An anti-pipeline protest was held in Prince Rupert on Jan. 8, coorindated with protests happening across the country in support of the Wet’suwet’en First Nation people opposing the Coastal GasLink pipeline. (Matthew Allen / The Northern View)

An anti-pipeline protest was held in Prince Rupert on Jan. 8, coorindated with protests happening across the country in support of the Wet’suwet’en First Nation people opposing the Coastal GasLink pipeline. (Matthew Allen / The Northern View)

B.C. provided $830M in fossil fuel subsidies in 2017-18: report

B.C. committed $902 million over the next three years to CleanBC

The British Columbia government gives hundreds of millions of dollars annually in subsidies for fossil fuel, including an estimated $830 million in the 2017-18 fiscal year, a new report says.

Most of the money goes to fossil fuel producers rather than consumers, says the report released Monday by the International Institute for Sustainable Development, an environmental think-tank.

The subsidies include royalty reductions, provincial tax exemptions and direct investments, undermining B.C.’s action on climate change including its long-standing carbon tax, says co-author Vanessa Corkal.

“If you have a boat and you’re trying to use the carbon price to bail water out of the boat, fossil fuel subsidies are kind of like the leak in that boat,” she says in an interview.

“As long as you’re funnelling money to an industry that is going to increase use and production of fossil fuels, a carbon price is only going to do so much.”

Royalty reductions made up a major portion of the approximately $830 million in subsidies given in 2017-2018, the most recent year for which data is available, the report says.

The report says oil and gas companies are required to pay royalties meant to provide benefits to B.C. residents, including by helping fund health care and education.

But every year, it says companies claim credits to reduce the royalties they pay. The report estimates B.C. has amassed at least $2.6 to $3.1 billion in outstanding royalty credits.

Provincial tax exemptions covered a smaller chunk of the subsidies in 2017-2018, the report says. While a large portion of tax exemptions go to fossil fuel consumers, that doesn’t just mean average residents trying to heat their homes — airlines, cruise ship companies and the agriculture sector also benefit.

Energy Minister Michelle Mungall says in a statement that a number of provincial initiatives have been “inaccurately characterized” in the report, though she didn’t specify which ones.

She says the CleanBC plan to fight climate change includes a program for industry that will reduce emissions by 2.5 million tonnes of CO2 equivalent per year by 2030.

“We regularly review royalty programs. Our government will keep working hard to keep B.C. on the path to a cleaner, better future that creates opportunities for all,” she says.

The report notes the B.C. New Democrat government has committed to progressive hikes of the carbon tax, but at the same time has introduced or entrenched fossil fuel subsidies in recent years.

The mining exploration tax credit, which helps to subsidize coal, was made permanent in 2019, the report says. Coal exploration increased by 58 per cent the previous year, it says.

B.C. also still exempts emissions from the carbon tax for controlled venting, or the releasing of gases into the air from natural gas operations, according to the report. With new liquefied natural gas facilities under construction, these types of emissions are likely to grow, it says.

The government has also established new subsidies and increased access to existing ones for the liquefied natural gas sector, the report says. This year the province signed an agreement with LNG Canada, a joint-venture group formed to build a major liquefied natural gas project in northern B.C.

In the agreement, the province committed to provide electricity at the standard industrial rate, eliminate the LNG income tax, allow LNG Canada to claim a natural gas income tax credit and defer provincial sales tax on construction costs.

The report prompted environmental group Stand.earth to call for the province to end subsidies to the oil and gas industry before the next election.

International program director Tzeporah Berman says the subsidies threaten the province’s climate change targets and undermine the CleanBC plan.

Berman notes B.C. committed $902 million over the next three years to CleanBC, only a little more than the $830 million the report says it gave fossil fuel polluters in 2017-2018.

“We cannot be getting off fossil fuels by handing taxpayer dollars to the biggest polluters to help them pollute,” Berman says.

“We need to be using taxpayers’ money to build the cleaner and safer economy that we want, and yes, we need to be increasing the cost to pollute.”

Laura Kane, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Jim Hilton took a trip to Helmcken falls in Wells Gray park. (Jim Hilton Photo)
HILTON: Forests and human health, Part one

What can Quesnel take away from worldwide forestry programs

Amy Newman (left) and castmate Rebecca Thackray parading around Barkerville in costume in 2018. Newman designed both gowns, which were both made of silk, and constructed her own gown. Thackray’s gown was made by a seamstress in Vancouver. Her camel-coloured velveteen cloak was made in Hong Kong, with pattern and fabric chosen by Newman. Her wool neckpiece/shawl was crocheted by a friend on Vancouver Island. The reticule/handbag was handmade by Newman, and her olive green shawl was ready-made, as were her elegant green leather gloves. (Photo Submitted)
Amy Newman wins international costume design award for Nam Sing film

The Nam Sing pack trip re-enactment took place in September 2019 in Barkerville

The council supports the Quesnel Art Walk. (Lindsay Chung Photo - Quesnel Cariboo Observer)
Quesnel arts council grant deadline fast approaching

The group has already help fund online compitition funding for the festival of performing arts

The worker who tested positive was en route to the Mine Site near Wells. (BGM Map)
Wells mining company detects second positive COVID-19 case of 2021

The employee, who is asympomatic, had no known contact with Wells or Quesnel

The artwork for the 2021 mail run was drawn by Sonja Maas, a German student who spent last winter in the Cariboo on a ranch which trains sled dogs. (Gold Rush Trail Sled Dog Mail Run)
Sled Dogs to hit the trail without spectators

The mail run from Quesnel to Barkerville will be limited in scope because of pandemic rules

Keith the curious kitten is seen on Nov. 4, 2020 at the Chilliwack SPCA. Friday, Jan. 22, 2021 is Answer Your Cat’s Questions Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Jan. 17 to 23

Answer Your Cat’s Questions Day, Pie Day and International Sweatpants Day are all coming up this week

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
A unique-looking deer has been visiting a Nanoose Bay property with its mother. (Frieda Van der Ree photo)
A deer with 3 ears? Unique animal routinely visits B.C. property

Experts say interesting look may be result of an injury rather than an odd birth defect

Standardized foundation skills assessment tests in B.C. schools will be going ahead later than usual, from Feb. 16 to March 12 for students in Grades 4 and 7. (Black Press Media file photo)
B.C. teachers say COVID-affected school year perfect time to end standardized tests

Foundational skills testing of Grade 4 and 7 students planned for February ad March

Sooke’s Jim Bottomley is among a handful of futurists based in Canada. “I want to help people understand the future of humanity.” (Aaron Guillen - Sooke News Mirror)
No crystal ball: B.C. man reveals how he makes his living predicting the future

63-year-old has worked analytical magic for politicians, car brands, and cosmetic companies

Terry David Mulligan. (Submitted photo)
Podcast: Interview with longtime actor/broadcaster and B.C. resident Terry David Mulligan

Podcast: Talk includes TDM’s RCMP career, radio, TV, wine, Janis Joplin and much more

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virtually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

Jobs Minister Ravi Kahlon shared a handwritten note his son received on Jan. 13, 2021. (Ravi Kahlon/Twitter)
Proud dad moment: B.C. minister’s son, 10, receives handwritten note for act of kindness

North Delta MLA took to Twitter to share a letter his son received from a new kid at school

Most Read