As countries around the world voice their participation in the United Nations Sustainable Development Goals, federal governments continue financial support for industries that release harmful pollutants into the water and atmosphere.
Despite nations' climate policies, subsidies for oil and gas continue to rise.
What's happening?
A recent article by Clean Technica shared reporting from Canada-based nonprofit Environmental Defence that in 2023 the Canadian government provided $18.553 billion to oil, gas, and petrochemical companies. A surprising $8 billion was given in the form of loan guarantees to the Trans Mountain pipeline project, adding another 608 miles of pipelines.
The report claims that over the past several years, the federal government in Canada has either provided subsidies to the oil and gas industry or bailouts when costs of new projects become too high, as was the case for the pipeline project when predicted costs soared from $5.4 billion to $34 billion.
"At a time when Canadians are dealing with a cost of living crisis, that level of funding could have retrofitted millions of homes to make them more energy efficient, therefore reducing energy bills," said Julia Levin, associate director of National Climate at Environmental Defence.
A similar study by the International Institute for Sustainable Development found that Canadian oil and gas companies plan to expand production up to nearly 30% from 2020 to 2030, leading to a 25% increase in associated harmful pollutants annually.
Why do subsidies for oil and gas matter?
As the article mentions, investments in industries that continue to cause planet-warming gases will take away financial backing that could be used to solve national challenges, such as housing and transportation. In Canada, for example, buying a home has become a greater obstacle. It is estimated that at the prices faced today, only 45% of all households would have the income to own a condo, while 26% have enough for a single-detached home.
With subsidies given to oil and gas companies, air quality will continue to suffer and public health will decline. The social and economic consequences of air pollution total up to $120 billion per year, affecting many Canadians.
By diverting funds to projects that promote clean energy, jobs can be created and citizens can enjoy a higher quality of life with clean air.
What's being done about it?
"It's painfully obvious that when you're in a hole, the first thing you do is stop digging," shares Levin.
Fortunately, groups worldwide are holding governments accountable with grassroots organizing and proposed legislation, such as finalizing a strong oil and gas rule on land controlled by the Bureau of Land Management. At a personal level, by rethinking daily habits and purchasing decisions, such as installing solar panels on homes and businesses, clean energy can rise above oil and gas when it comes to financial support.
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