Assessment of Fossil Fuel Subsidies in Canada
A case study of the Trans Mountain Pipeline
This report evaluates a potential fossil fuel subsidy provided to the Canadian oil industry through the Government of Canada's expansion and continued operation of the Trans Mountain Pipeline (TMP) using the government's new fossil fuel subsidies assessment framework as the basis for analysis.
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Despite its own policy to phase out fossil fuel subsidies, Canada continues to subsidize oil transportation through the Trans Mountain Pipeline, up to CAD 18.8 billion over the project's lifespan.
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Canada has already invested CAD 37.5 billion in the Trans Mountain Pipeline. With pipeline tolls too low to cover the project costs, that investment won't be paid back, and taxpayers will be on the hook.
This report evaluates a potential fossil fuel subsidy provided to the Canadian oil industry through the Government of Canada's expansion and continued operation of the Trans Mountain Pipeline (TMP), using the government's new fossil fuel subsidies assessment framework as the basis for analysis. The analysis finds a potential subsidy to the oil industry in the range of CAD 8.7 billion to CAD 18.8 billion due to tolls that are below the cost of operating the pipeline.
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