Stimulus Spending in Canada: Priority on fossil fuels

Geography: North America
Sector: Energy

Read More: Canada supporting fossil fuels

On August 12, 2020, the National Observer published an article analyzing Canada’s stimulus spending for the energy sector. Based on data compiled by the Energy Policy Tracker, which is co-hosted by IISD, the authors highlight the huge sums supporting the production and consumption of fossil fuels. Canada, in particular, has committed a total of USD 12 billion in additional support for fossil fuels this year. Per capita, this amount is nearly 10 times the G20 average, making Canada the country with the second-largest spending on fossil fuels.

The economic stimulus dedicated to supporting clean energy remains behind, amounting to approximately USD 2.37 billion. While about half of energy-related stimulus provided by the federal government supports clean energy solutions for the building and transit sectors, the stimulus spending by the provincial and territorial governments varies widely, with some channelling significantly more than others toward the oil and gas sector as well as car-based mobility. Finally, the authors also illustrate how emissions soared up in 2010 after the economic crisis and call for action to prevent a similarly harmful development when the world recovers from the COVID-19 pandemic.