2022 Federal Fossil Fuel Subsidies
Due to a lack of transparency and public reporting, tracking subsidies provided to the oil and gas sector by the Government of Canada and its agencies remains a difficult task. Federal tax deductions are not disclosed. There is no comprehensive inventory of direct spending by the government.
Given that this page only includes what was reasonably possible to track, this is likely an underestimate.
Sort By:
| Program | Description | Amount |
|---|---|---|
| Spending on Trans Mountain Pipeline | A $10 billion loan guarantee and other loans/financial support for TransMountain pipeline made through the Canada Account, which is administered by Export Development Canada, but decisions are made by Minister Freeland. | $12 billion |
| Export Development Canada | EDC is a crown corporation that provides public finance for oil and gas projects, both in Canada and countries around the world. This figure includes a $500 million loan to the Coastal GasLink Pipeline. | $8730 million |
| Strategic Innovation Fund (Innovation, Science and Economic Development Canada) | This program provides support for the Clean Resource Innovation Network, to help the oil and gas sector grow, create jobs and reduce its greenhouse gas emissions. | $78 million |
| Emissions Reduction Fund (Natural Resources Canada) | This program provides $750 million for oil and gas companies to reduce their methane emissions. $134 million was distributed in 2021. The number here reflects 2022 spending. | $20 million |
| Oil Spill Response Challenge | This program provides support for solutions to detect oil spills and to increase oil spill recovery rates. | $10 million |
| Clean Growth Program (Natural Resources Canada) | This program provides $155 million over 4 years for clean technology research and development and demonstration projects in three Canadian sectors: energy, mining and forestry.
The number listed here will reflect spending that went to benefit oil and gas companies. |
$9.5 million |
| Prairies Economic Development Canada | Promotes economic growth in Alberta, Manitoba and Saskatchewan | $2.3 million |
| Carbon capture, utilization and storage stream (Energy Innovation Program, Natural Resources Canada) | This program provides $319 million over seven years into research, development, and demonstrations to advance the commercial viability of CCUS technologies. The number listed here will reflect spending that went to benefit oil and gas companies. | $50 million |
| Energy Innovation Program (Natural Resources Canada) | This program subsidizes the development of 'clean' oil and gas technologies | $0.5 million |
| Clean Fuels and Industrial Fuel Switching (Energy Innovation Program, Natural Resources Canada) | This program provides $50 million for industrial fuel switching and "clean" fuels production.
The number listed here will reflect spending that went to oil and gas companies, including fossil hydrogen. |
Data not available |
| Clean Fuels Fund (Natural Resources Canada) | This program provides $1.5 billion over five year for 'clean' fuel production in Canada. The number listed here will reflect spending that went to benefit oil and gas companies. |
Data not available |
| Net Zero Accelerator (Innovation, Science and Economic Development Canada) | This program provides $8 billion over 7 years to accelerate decarbonization projects with large carbon emitters and scale-up clean technologies. The number listed here will reflect spending that went to benefit oil and gas companies. |
$300 million |
| Oil and Gas Industry Recovery Fund | $320 million to subsidize Newfoundland and Labrador's offshore oil industry. Most of this was spent in 2021. | Data not available |
| Output-Based Pricing System Proceeds Fund (Environment and Climate Change Canada) | This program subsidizes industrial initiatives that reduce greenhouse gas emissions and deploy clean technology and green energy. The number listed here will reflect spending that went to benefit oil and gas companies. |
Data not available |
| Canadian development expense | Tax break. Allows mining companies, including oil and gas, to claim expenses related to developing mines. The Parliamentary Budget estimates the impact of this tax credit for the fossil fuel sector was $1.8 billion in 2019 (the latest year numbers are available for). |
Data not available |
| Flow through shares | Tax break. Will be phased out by 2027.
Flow-through shares are an authorized tax shelter arrangement that allows a corporation to transfer certain unused tax deductions to equity investors. |
Data not available |
| Foreign resource expense | Tax break. Canadian mining companies that incur exploration expenses abroad can claim the Foreign Resource Expense
The Parliamentary Budget estimates the impact of this tax credit for the fossil fuel sector was $38 million in 2019 (the latest year numbers are available for). |
Data not available |
| Accelerated Capital Cost Allowance for LNG | Tax Break . This measure is set to expire in 2025 | Data not available |
| Oil and gas property expense | Tax break. | Data not available |
| Sustainable Development Technology Canada | SDTC is a crown corporation that provides subsidies for "clean technology" that supports sustainable development. The number listed here will reflect spending that went to benefit oil and gas companies. |
$2.5 million |
Total Subsidies Amount
*that we can track
$21.198 billion
*that we can track
$21.198 billion
