About The Submission:
Environmental Defence is encouraged that the government of British Columbia recognizes that the current oil and gas royalty framework is subsidizing fossil fuels and is seeking input on the design of a new framework. Among other things, we recommend that the new royalty framework: aligns its overarching goals with meaningful reconciliation, climate imperatives, and economic assumptions based on global climate success; sets a high royalty rate which reflects the true costs of climate change and fossil fuel extraction; eliminates the fossil fuel subsidies embedded in the current system; and restores transparency through a simplified system, such as a flat rate on production with no capital recovery mechanism.
