At COP26 in Glasgow, Scotland, the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced that Canada signed the Statement on International Public Support for the Clean Energy Transition ending new support for the international unabated fossil fuel energy sector by the end of 2022. Canada made this commitment alongside 38 other countries and institutions and was one of only three major energy producers to do so.
Today, Minister Wilkinson announced the Government of Canada’s implementation of this commitment with the release of the policy guidelines that lay the foundation for federal departments and agencies to put in place the measures set out in the Statement.
These guidelines will ensure that Canada meets — and in some cases exceeds — the ambition announced at COP26.
They describe the activities that will be captured by Canada’s commitment. The guidelines will:
- end new, direct public financing for international unabated fossil fuel investments and projects via Government of Canada departments, agencies and Crown corporations, and federal support programs;
- guide the Government of Canada representatives in their voting on the boards of multilateral development banks; and
- inform the Government of Canada’s positions in multilateral institutions such as the G7, G20 and OECD.
By ending new direct public support for the international unabated fossil fuel energy sector, Canada will ensure its investments abroad are aligned with its domestic and international climate goals, which means investing in clean energy and renewables. In support of this action, Canada’s export credit agency, Export Development Canada (EDC), will continue to advance the transition away from oil and gas and into cleantech growth. In practice, this means that EDC’s committed business under the scope of the Glasgow Statement, which has not yet reached maturity, is $2.5 billion. This business will not be renewed. EDC also plans to continue scaling its annual financing for clean technology with an objective to grow investment from $6.3 billion in 2021 to $10 billion by 2025.
The guidelines issued today are distinct from and do not pre-determine the Government of Canada’s future domestic framework on fossil fuel subsidies. The government recognizes that work must also be done to eliminate inefficient fossil fuel subsidies domestically and commits to eliminating additional significant fossil fuel subsidies early in 2023. Important progress has been made, and — including the phasing-out of flow-through shares for oil, gas and coal activities in 2023, announced in Budget 2022 — nine inefficient fossil fuel subsidies have been, or are in the process of being, phased out or rationalized.
The Government of Canada will continue to work with international and domestic partners to achieve our ambitious climate and international development commitments, establish Canada as the global supplier of choice for clean energy in a net-zero world, and ensure a prosperous and clean future for Canadians from coast to coast to coast.
“Canada is delivering on its international climate commitments. With the release of today’s guidelines, Canada is taking another step toward becoming a clean energy and technology supplier of choice in a net-zero world.”
The Honourable Jonathan Wilkinson
Minister of Natural Resources
“The world is facing a climate emergency, and government resources must be directed to investments in clean energy, not burning fossil fuels. Canada will continue to support other countries to develop the clean energy they need to power their economies, including through various investments from our $5.3 billion in climate financing.”
The Honourable Steven Guilbeault
Minister of Environment and Climate Change