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

A 3.0-magnitude earthquake occurred off Ucluelet just after 12:30 a.m. on April 10 and was reportedly felt as far south as Oregon. (Map via United States Geological Survey)
Quake off Ucluelet reportedly felt as far south as Oregon

Magnitude 1.5 earthquake also reported off Vancouver Island’s west coast hours earlier

Transfer Beach Dippers have been taking to the waters of Transfer Beach as safely as possible during the COVID-19 pandemic. (Submitted photo)
‘Transfer Beach Dippers’ group finds community in the cold water

Dippers tend to dip at 6am, 8:45am, or 6pm at Transfer Beach

John Ambrose Seward, 33, is described as Indigenous and five-foot-eight with short black hair and brown eyes. (Police handout)
John Ambrose Seward, 33, is described as Indigenous and five-foot-eight with short black hair and brown eyes. (Police handout)
High-risk sex offender banned from central Island, living in Vancouver: police

John Ambrose Seward, 33, has been released from prison under a number of conditions

Chemainus Theatre facilities manager Damion Knight at the spot inside the gallery and gift shop where thieves smashed a window and grabbed masks. (Photo by Don Bodger)
Unique masks valued at $1,000 stolen from Chemainus Theatre Gallery

Thieves smash a window and grab the goods early Monday morning

Firefighters, including those from Cranberry volunteer department, are battling a blaze in the Nanaimo River Road area. (Chris Bush/News Bulletin)
Dwelling destroyed, two taken to hospital after Nanaimo River Road blaze

Numerous fire departments and first responders at south Nanaimo area

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

Two-year-old Ivy McLeod, seen here on April 9, 2021 with four-year-old sister Elena and mom Vanessa, was born with limb differences. The family, including husband/dad Sean McLeod, is looking for a family puppy that also has a limb difference. (Jenna Hauck/ Chilliwack Progress)
B.C. family looking for puppy with limb difference, just like 2-year-old Ivy

Ivy McLeod born as bilateral amputee, now her family wants to find ‘companion’ puppy for her

A vehicle that was driven through the wall of a parkade at Uptown Shopping Centre and into the nearby Walmart on April 9 was removed through another hole in the wall later that night. (Photo via Saanich Police Department and Ayush Kakkar)
Vehicle launched into B.C. Walmart removed following rescue of trapped workers

Crews cut new hole in parkade wall to remove vehicle safely

Four members with Divers for Cleaner Lakes and Oceans were out at Cultus Lake on March 28 and 29 hauling trash out of the waters. (Henry Wang)
PHOTOS: Out-of-town divers remove 100s of pounds of trash from Cultus Lake

Members of Divers for Cleaner Lakes and Oceans hauled out 470 pounds of trash over two days

As of Saturday, April 10, people born in 1961 are the latest to be eligible for a COVID-19 vaccine. (Black Press files)
B.C. residents age 60+ can now register to get their COVID-19 vaccine

Vaccine registration is now open to people born in 1961 or earlier

A new saline gargle test, made in B.C., will soon be replacing COVID-19 nasal swab tests for kids. (PHSA screenshot)
Take-home COVID-19 tests available for some B.C. students who fall ill at school

BC Children’s Hospital plans to provide 1,200 kits to Vancouver district schools this April

Ruming Jiang and his dog Chiu Chiu are doing fine following a brush with hypothermia that saw several people work together to get them out of the Fraser River near Langley’s Derby Reach Park on March 25, 2021 (Special to the Advance Times)
Man finds men who rescued him from drowning in B.C.’s Fraser River

A grateful Ruming Jiang says he will thank them again, this time in person when the pandemic ends

The 10-part Netflix series Maid, which is being exclusively shot in Greater Victoria, was filming near Prospect Lake in Saanich last month. (Photo courtesy Fred Haynes)
Province announces $150,000 towards South Island film studio, fulfilling B.C. NDP promise

Investment to fund movie studio feasibility study at Camosun College

Tyson Ginter, 7, is proud of his latest Hot Wheels he recently received by Quesnel RCMP Const. Matt Joyce. (Photo submitted)
B.C. Mountie handing out toy cars to light up children’s faces

‘A lot of times it will be the only interaction they have with the police,’ says Const. Matt Joyce

Most Read