Every year, Canada’s federal government gives billions in direct subsidies, tax breaks and government-backed financial support to the fossil fuel industry. By making it cheaper to extract fossil fuels, these subsidies transfer public money to some of the richest companies in the world, contribute to climate change, and divert funds from programs that would benefit the public – like healthcare.
The table below is just what we can track – much of the information about the amount of the subsidy and how it was used was not publicly available.
2026 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 |
|---|---|---|
| Canada Indigenous Loan Guarantee Corporation | CILGC is responsible for managing the Indigenous Loan Guarantee Program, which provides financial solutions to help Indigenous groups participate in Canada’s growing economy. Its role includes engaging with eligible applicants, conducting due diligence, negotiating agreements, and issuing loan guarantees that empower Indigenous groups to take part in economic opportunities. | |
| Canada Infrastructure Bank | A federal crown corporation dedicated to supporting infrastructure projects. | |
| Canada Enterprise Emergency Funding Corp. | A funding program designed to help airlines manage the increase in aviation fuel costs. | $150 million |
| Clean Fuels Fund | This program provides $1.5 billion over five year for 'clean' fuel production in Canada. | $ 24.9 million |
| Canada Growth Fund | A $15 billion independent and arm’s length public fund meant to provide subsidies for clean energy projects. | $ 28 million |
| Energy Innovation Program, Natural Resources Canada | Advances clean energy technologies that will help Canada maintain a competitive, reliable, and affordable energy system while transitioning to a low-carbon economy. Most of the funds listed here went to support carbon capture and storage technologies. | $3.97 million |
| 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 $500 million in financing for Cedar LNG, $300 million for Enbridge US and $200 million for the Coastal GasLink pipeline. | $3,419 million |
| Green Industrial Facilities and Manufacturing Program | The Green Industrial Facilities and Manufacturing Program (GIFMP) provides financial assistance to support the implementation of energy efficiency and energy management solutions designed to: maximize energy performance reduce greenhouse gas (GHG) emissions increase competitiveness for industry in Canada | $ 0.37 million |
| Indigenous Natural Resource Partnerships | This program aims to increase the economic participation of Indigenous communities and organizations in the development of natural resource projects that support the transition to a clean energy future. | |
| Low Carbon Economy Fund | The Low Carbon Economy Fund is an important part of Canada’s clean growth and climate action plans. It invests in projects that reduce greenhouse gas emissions, generate clean growth, build resilient communities, and create jobs for Canadians. | |
| Output-Based Pricing System (OBPS) Proceeds Fund | This program is funded by proceeds collected from the federal Output-Based Pricing System to either decarbonize Canada's industrial sectors or to support clean electricity projects and/or programs. The number listed here will reflect spending that went to benefit oil and gas companies. | |
| Prairies Economic Development Canada | Promotes economic growth in Alberta, Manitoba and Saskatchewan. These funds went to oil and gas companies and projects. | |
| Strategic Response Fund | Provides major investments in innovative projects to grow Canada's economy. The amount listed here went to oil and gas companies. | $7.8 million |
| Fuel Excise Tax Relief | Temporarily suspend the application of the federal fuel excise tax on gasoline, diesel fuel, and aviation fuels by setting their rates to 0 cents per litre, effective April 20, 2026 until Labour Day, September 7, 2026 (inclusive). This measure is intended to address fuel price pressures caused by global oil disruptions related to the Middle East conflict. | $5,300 million |
| Bay Du Nord | The federal government (via Natural Resources Canada) has agreed to cover international royalty payments required by the United Nations Convention on the Law of the Sea (UNCLOS). | $1,000 million |
| North Coast Transmission Line | The federal government has agreed to financially support the North Coast Transmission Line (Phase 1 and Phase 2) to electrify the Ksi Lisms LNG project | $3,900 million |
Total Subsidies Amount
*that we can track
$13.83 billion
*that we can track
$13.83 billion
Reports
