Even as it claims to be working to “tackle climate change,” Canada's export credit agency continues to provide roughly 10 billion dollars in support to fossil fuel companies each year.
As leaders of the world’s richest countries gather at the G7 summit today, Canada’s prime minister intends to push for a commitment on climate change in the meeting’s final statement. But the government’s slow progress on a 2009 pledge to eliminate fossil fuel subsidies raises questions about Canada’s own commitment to cut emissions.
In this letter, we urge Canada’s environment minister to ensure that financing provided to oil and gas companies by Export Development Canada (EDC) is included in the government’s review of non-tax fossil fuel subsidies. As the government works towards its stated goal of fighting climate change, the billions of dollars in support EDC provides to the oil and gas sector every year must not be left out of the equation.
Earlier this year, Export Development Canada (EDC) was tasked with running Canada’s new Development Finance Institute. In its new role financing private investment for the purposes of poverty alleviation and sustainable development, EDC will need to adopt robust due diligence practices to ensure the investments it supports respect human rights and the environment.
Following up on a recent report that reveals Canada pours billions of dollars in public financing into fossil fuels each year -- putting our country in 6th place for largest public supporter of fossil fuels among G20 states -- we've written to the prime minister calling for an immediate commitment to end public financing of fossil fuels.