Subjects: ENI, ENP, CFG
Government of Canada Delivers on Key International Climate Commitment to End New Public Support for the International Unabated Fossil Fuel Energy Sector
OTTAWA, ON, Dec. 8, 2022 /CNW/ - At COP26 in Glasgow, Scotland, the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced that Canada signed the Statement on International Public Support for the Clean Energy Transition ending new support for the international unabated fossil fuel energy sector by the end of 2022. Canada made this commitment alongside 38 other countries and institutions and was one of only three major energy producers to do so.
Today, Minister Wilkinson announced the Government of Canada's implementation of this commitment with the release of the policy guidelines that lay the foundation for federal departments and agencies to put in place the measures set out in the Statement.
These guidelines will ensure that Canada meets ? and in some cases exceeds ? the ambition announced at COP26.
They describe the activities that will be captured by Canada's commitment. The guidelines will:
- end new, direct public financing for international unabated fossil fuel investments and projects via Government of Canada departments, agencies and Crown corporations, and federal support programs;
- guide the Government of Canada representatives in their voting on the boards of multilateral development banks; and
- inform the Government of Canada's positions in multilateral institutions such as the G7, G20 and OECD.
By ending new direct public support for the international unabated fossil fuel energy sector, Canada will ensure its investments abroad are aligned with its domestic and international climate goals, which means investing in clean energy and renewables. In support of this action, Canada's export credit agency, Export Development Canada (EDC), will continue to advance the transition away from oil and gas and into cleantech growth. In practice, this means that EDC's committed business under the scope of the Glasgow Statement, which has not yet reached maturity, is $2.5 billion. This business will not be renewed. EDC also plans to continue scaling its annual financing for clean technology with an objective to grow investment from $6.3 billion in 2021 to $10 billion by 2025.
The guidelines issued today are distinct from and do not pre-determine the Government of Canada's future domestic framework on fossil fuel subsidies. The government recognizes that work must also be done to eliminate inefficient fossil fuel subsidies domestically and commits to eliminating additional significant fossil fuel subsidies early in 2023. Important progress has been made, and ? including the phasing-out of flow-through shares for oil, gas and coal activities in 2023, announced in Budget 2022 ? nine inefficient fossil fuel subsidies have been, or are in the process of being, phased out or rationalized.
The Government of Canada will continue to work with international and domestic partners to achieve our ambitious climate and international development commitments, establish Canada as the global supplier of choice for clean energy in a net-zero world and ensure a prosperous and clean future for Canadians from coast to coast to coast.
Quotes
"Canada is delivering on its international climate commitments. With the release of today's guidelines, Canada is taking another step toward becoming a clean energy and technology supplier of choice in a net-zero world."
The Honourable Jonathan Wilkinson
Minister of Natural Resources
"The world is facing a climate emergency, and government resources must be directed to investments in clean energy, not burning fossil fuels. Canada will continue to support other countries to develop the clean energy they need to power their economies, including through various investments from our $5.3 billion in climate financing."
The Honourable Steven Guilbeault
Minister of Environment and Climate Change
"Canada is showing the leadership needed to fight climate change, and with these guidelines we are taking an important step forward to protect our environment. EDC is well ahead of the curve, supporting Canadian business owners as they navigate fast-changing, sustainable global markets while remaining competitive. By working together across Canada and with our international trade and investment partners, we can ensure a better future for all."
The Honourable Mary Ng
Minister of International Trade, Export Promotion, Small Business and Economic Development
Quick Facts
- In November 2022, ongoing progress and implementation on efforts to address climate change were discussed at the United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, Egypt. Canada and almost 200 other countries agreed to the Sharm El-Sheikh Implementation Plan, the next step forward for climate ambition under the Paris Agreement.
- In Budget 2017, the Government of Canada announced the elimination of certain tax preferences for exploration and development expenses in the oil and gas sector.
- In 2009, G20 leaders committed to "rationalize and phase out over the medium term inefficient fossil fuel subsidies while providing support for the poorest." At the North American Leaders' Summit on June 29, 2016, Canada, the United States and Mexico publicly committed to phase out inefficient fossil fuel subsidies by 2025. The latest mandate letters for the Ministers of Environment and Climate Change and of Finance accelerated this timeline to 2023.
- On December 12, 2015, Canada and 194 other countries reached the Paris Agreement, an ambitious and balanced agreement to fight climate change. This new agreement will strengthen the effort to limit the global average temperature rise to well below 2°C and pursue efforts to limit the increase to 1.5°C.
- In March 2022, Prime Minister Justin Trudeau announced the release of Canada's 2030 Emissions Reduction Plan, an ambitious and achievable sector by sector approach for Canada to reach its climate target of cutting emissions by 40 percent below 2005 levels by 2030 and to put us on track toward achieving our goal of achieving net-zero emissions by 2050.
Related Information
Guidelines for Canada's International Support for the Clean Energy Transition
Statement on International Public Support for the Clean Energy Transition
2030 Emissions Reduction Plan: Clean Air, Strong Economy
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SOURCE Natural Resources Canada
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