Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People – While communities are experiencing the climate crisis firsthand, with heatwaves and wildfires raging across the globe, Canada’s biggest oil and gas companies say they can’t even meet the federal government’s modest 2030 greenhouse gas emissions reduction targets. At the same time, Canada’s biggest oil and gas companies are profiting tremendously from the crisis in Ukraine: they have made $12 billion in profits in the last quarter. It is unacceptable that these same wealthy companies continue to block climate action and lobby for even more subsidies, on top of the billions they already receive. Canadian governments should not cave to the industry’s demands. Governments around the world have implemented windfall taxes, it is crucial that the Government of Canada do the same.
ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.
Background information:
- Second quarter (Q2) financial results for Canada’s largest oil companies have recently been announced. The combined profits (net earnings) of the biggest four are over $12 billion:
- Suncor $3.996 billion
- CNRL $3.502 billion
- Imperial Oil $2.409 billion
- Cenovus $2.432 billion
- This represents a major increase from Q2 in 2021 (Suncor net earnings were $868 million, CNRL $1.551 billion, Imperial Oil $366 million, Cenovus $1.365 billion), which totalled $4.15 billion
- This increase in profits from Q2 2021 to Q2 2022 is almost threefold.
- The oil and gas sector is Canada’s largest and fastest growing source of greenhouse gas emissions, contributing 26% of Canada’s total emissions. Over the past 30 years, sector emissions have grown 87%, even as other industries have reduced emissions.
- After these earnings were announced, the federal government was asked if it would institute a windfall profits tax and said no, according to CBC.ca
- After years of promises from the oil & gas industry that it can reduce emissions from production, the industry now says it cannot meet the government’s targets and timelines, and are asking for more time and/or more subsidies to reduce emissions,, according to CBC.ca
Additional Resources:
- Running List of Federal Fossil Fuel Subsidies in Canada in 2022, compiled by Environmental Defence
- A letter from 86 civil society and grassroots organizations to Prime Minister Justin Trudeau in March, calling on him to impose a windfall tax on soaring oil and gas profits and to stand firm and redouble efforts on climate action in the face of profiteering attempts from the fossil fuel lobby.
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For more information or to request an interview, please contact:
Barbara Hayes, Environmental Defence, bhayes@environmentaldefence.ca