Statement by Aly Hyder Ali, Oil and Gas Senior Program Manager, Environmental Defence

Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People –With an initial $25 billion federal contribution to the Canada Strong Fund and more details to come, it is imperative that this fund doesn’t become another public subsidy vehicle for pipelines, LNG terminals or other fossil fuel expansion projects that keep Canada locked into the past.

Doubling down on fossil fuel infrastructure would chain Canada’s future wealth to a sunset industry facing growing global uncertainty, while putting billions of public dollars at risk of becoming stranded assets. At the same time, communities across the country are already paying the price of climate change through fires, droughts, floods and other extreme weather events. Canada can’t afford to continue funding the problem instead of investing in solutions.

Instead of propping up the fossil fuel industry, this fund should be used for projects that can make life more affordable for Canadians, such as expanding EV infrastructure, an East-West electricity grid and affordable, energy-efficient homes. There are renewable energy projects from coast to coast ripe for investment, which will generate steady long-term returns while providing stable power at stable costs to consumers.

It is encouraging to hear commitments that this fund will not repeat mistakes of the past by trampling Indigenous rights or workers’ rights in the name of development. Nation building must mean building projects that are fair, sustainable and supported by the people and communities most affected.

If done right, a sovereign wealth fund could accelerate the clean energy projects and infrastructure that Canada needs and help Canada build a thriving economy of the future. Or it could further subsidize economically reckless fossil fuel projects that tie Canada to a declining industry. The choice belongs to Prime Minister Mark Carney.

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For more information or to request an interview, please contact:

Midhat Moini, Environmental Defence, media@environmentaldefence.ca