An anti-pipeline protest was held in Prince Rupert on Jan. 8, coorindated with protests happening across the country in support of the Wet’suwet’en First Nation people opposing the Coastal GasLink pipeline. (Matthew Allen / The Northern View)

An anti-pipeline protest was held in Prince Rupert on Jan. 8, coorindated with protests happening across the country in support of the Wet’suwet’en First Nation people opposing the Coastal GasLink pipeline. (Matthew Allen / The Northern View)

B.C. provided $830M in fossil fuel subsidies in 2017-18: report

B.C. committed $902 million over the next three years to CleanBC

The British Columbia government gives hundreds of millions of dollars annually in subsidies for fossil fuel, including an estimated $830 million in the 2017-18 fiscal year, a new report says.

Most of the money goes to fossil fuel producers rather than consumers, says the report released Monday by the International Institute for Sustainable Development, an environmental think-tank.

The subsidies include royalty reductions, provincial tax exemptions and direct investments, undermining B.C.’s action on climate change including its long-standing carbon tax, says co-author Vanessa Corkal.

“If you have a boat and you’re trying to use the carbon price to bail water out of the boat, fossil fuel subsidies are kind of like the leak in that boat,” she says in an interview.

“As long as you’re funnelling money to an industry that is going to increase use and production of fossil fuels, a carbon price is only going to do so much.”

Royalty reductions made up a major portion of the approximately $830 million in subsidies given in 2017-2018, the most recent year for which data is available, the report says.

The report says oil and gas companies are required to pay royalties meant to provide benefits to B.C. residents, including by helping fund health care and education.

But every year, it says companies claim credits to reduce the royalties they pay. The report estimates B.C. has amassed at least $2.6 to $3.1 billion in outstanding royalty credits.

Provincial tax exemptions covered a smaller chunk of the subsidies in 2017-2018, the report says. While a large portion of tax exemptions go to fossil fuel consumers, that doesn’t just mean average residents trying to heat their homes — airlines, cruise ship companies and the agriculture sector also benefit.

Energy Minister Michelle Mungall says in a statement that a number of provincial initiatives have been “inaccurately characterized” in the report, though she didn’t specify which ones.

She says the CleanBC plan to fight climate change includes a program for industry that will reduce emissions by 2.5 million tonnes of CO2 equivalent per year by 2030.

“We regularly review royalty programs. Our government will keep working hard to keep B.C. on the path to a cleaner, better future that creates opportunities for all,” she says.

The report notes the B.C. New Democrat government has committed to progressive hikes of the carbon tax, but at the same time has introduced or entrenched fossil fuel subsidies in recent years.

The mining exploration tax credit, which helps to subsidize coal, was made permanent in 2019, the report says. Coal exploration increased by 58 per cent the previous year, it says.

B.C. also still exempts emissions from the carbon tax for controlled venting, or the releasing of gases into the air from natural gas operations, according to the report. With new liquefied natural gas facilities under construction, these types of emissions are likely to grow, it says.

The government has also established new subsidies and increased access to existing ones for the liquefied natural gas sector, the report says. This year the province signed an agreement with LNG Canada, a joint-venture group formed to build a major liquefied natural gas project in northern B.C.

In the agreement, the province committed to provide electricity at the standard industrial rate, eliminate the LNG income tax, allow LNG Canada to claim a natural gas income tax credit and defer provincial sales tax on construction costs.

The report prompted environmental group Stand.earth to call for the province to end subsidies to the oil and gas industry before the next election.

International program director Tzeporah Berman says the subsidies threaten the province’s climate change targets and undermine the CleanBC plan.

Berman notes B.C. committed $902 million over the next three years to CleanBC, only a little more than the $830 million the report says it gave fossil fuel polluters in 2017-2018.

“We cannot be getting off fossil fuels by handing taxpayer dollars to the biggest polluters to help them pollute,” Berman says.

“We need to be using taxpayers’ money to build the cleaner and safer economy that we want, and yes, we need to be increasing the cost to pollute.”

Laura Kane, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
110 new cases of COVID-19 in Interior Health

Provincial health officers announced 1,005 new cases throughout B.C.

File
TNRD to test emergency alert app

The Voyent Alert! emergency notification will be sent April 23.

Interior Health nurses administer Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16. (Phil McLachlan/Kelowna Capital News)
69 new cases of COVID-19 in Interior Health

The total number of cases in the region is now at 9,840 since the pandemic began

Kelowna General Hospital (File photo)
Interior Health hospitals not strained by rising COVID case counts

While provincial hospitalizations rise, health care systems in the B.C. Interior remain robust, say officials

An Interior Health nurse administers Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16, 2021. (Phil McLachlan/Kelowna Capital News)
105 new COVID-19 cases in Interior Health

Just over 8,000 new vaccine doses administered in the region for a total of 158,000 to date

Rainbow trouts thrashing with life as they’re about to be transferred to the largest lake of their lives, even though it’s pretty small. These rainbows have a blue tinge because they matched the blue of their hatchery pen, but soon they’ll take on the green-browns of their new home at Lookout Lake. (Zoe Ducklow/News Staff)
VIDEO: B.C. lake stocked with hatchery trout to delight of a seniors fishing club

The Cherish Trout Scouts made plans to come back fishing soon

Vancouver Police Const. Deepak Sood is under review by the Independent Investigations Office of B.C. after making comments to a harm reduction advocate Sunday, April 11. (Screen grab)
VIDEO: Vancouver officer convicted of uttering threats under watchdog review again

Const. Deepak Sood was recorded Sunday saying ‘I’ll smack you’ and ‘go back to selling drugs’ to a harm reduction advocate

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C.’s COVID-19 infection rate persists, 1,005 new cases Friday

Hospitalization up to 425, six more virus-related deaths

Premier John Horgan receives a dose of the AstraZeneca COVID-19 vaccine at the pharmacy in James Bay Thrifty’s Foods in Victoria, B.C., on Friday, April 16, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. Premier John Horgan gets AstraZeneca shot, encourages others

27% of residents in B.C. have now been vaccinated against COVID-19

The Nautical Dog Cafe at Skaha marina is getting its patio ready in hopes Mother Nature will provide where provincial restrictions have taken away indoor dining. (Facebook)
‘A lot of instability’: B.C. restaurants in layoff limbo

As COVID-19 cases stay high, restaurants in British Columbia are closed to indoor dining

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Finance Minister Chrystia Freeland responds to a question during a news conference on Parliament Hill in Ottawa, Tuesday, Aug. 18, 2020. THE CANADIAN PRESS/Adrian Wyld
Expectations high as Trudeau Liberals get ready to unveil first pandemic budget

The Liberals will look to thread an economic needle with Monday’s budget

Royal Inland Hospital in Kamloops. (Dave Eagles/Kamloops This Week file photo)
RCMP intercept vehicle fleeing with infant taken from Kamloops hospital

The baby was at the hospital receiving life-saving care

Since April 4, 38 flights with COVID-19 cases have departed from Vancouver International Airport, while 23 arrived. (Phil McLachlan/Capital News)
Vancouver the largest source of domestic flights with COVID-19 cases: data

This month alone, 38 flights with COVID-19 cases have departed from Vancouver International Airport, while 23 arrived

John Furlong, Own The Podium board chairman and former CEO of the Vancouver Olympics, addresses a Vancouver Board of Trade luncheon in Vancouver, B.C., on Wednesday November 25, 2015.THE CANADIAN PRESS/Darryl Dyck
John Furlong presents 2030 Winter Games vision to Vancouver Board of Trade

Vancouver and Whistler would remain among host sites because of 2010 sport venues still operational

Most Read