Canada announces commitment to end new direct public support for international unabated fossil fuel sector by end of 2022

From: Natural Resources Canada

Climate change represents one of the biggest threats to global security, environmental protection and economic prosperity. It’s also an enormous economic opportunity for businesses and workers in Canada and around the world. This is why the Government of Canada remains committed to reaching net-zero emissions by 2050, and supports the decarbonization of heavy-emitting sectors and clean technology that reduce emissions at home and abroad, including in the oil and gas sector.

Today, Canada, alongside other major economies such as the United States and the United Kingdom and 21 other countries in signing the Statement on International Public Support for the Clean Energy Transition at the COP26 (Conference of the Parties) climate change conference in Glasgow, Scotland.

Building on the June 2021 G7 Leaders commitment, Canada and other signatories will further prioritize support for clean technology and end new direct public support for the international unabated fossil fuel sector by the end of 2022, except in limited and clearly defined circumstances that are consistent with the 1.5 degree Celsius warming limit and the goals of the Paris Agreement.

The Government of Canada will develop policy direction that will define the scope of this policy.

Joint efforts like this one help support the transition to a prosperous net-zero emissions economy. Canada will continue to work with its domestic and international partners to address climate change, while ensuring sustainable, resilient and inclusive global economic development.

Quotes

“Building clean energy systems across the world will help us achieve our climate goals and build a prosperous future for everyone. In signing this declaration, Canada is aligning its international investments with its climate ambition.”

The Honourable Jonathan Wilkinson

Minister of Natural Resources Canada

“Canada can lead in the low-carbon world if we keep putting our investments, innovations and brain power behind ambitious climate action. That means quickly winding down new public international investments in unabated fossil fuels and powering up the shift to clean sources of energy. I have every confidence in Canada’s ability to blaze a trail and win the jobs and economic prosperity that will come to those who lead the global transition to net-zero no later than 2050.”

The Honourable Steven Guilbeault

Minister of Environment and Climate Change

Quick facts

  • Earlier this week At COP26, the Government of Canada committed to assist low and middle income countries transition away from coal-fired electricity by providing up to $1 billion in climate finance to expand access to clean energy and to support a fair and inclusive transition for coal workers and affected communities. This new commitment will be part of Canada’s recent announcement to double its international climate finance from the $2.65 billion announced in 2015 to $5.3 billion over the next five years to help developing countries transition to low-carbon, resilient economies.

  • In June 2021, Canada joined other G7 leaders committed to phase out new direct government support for international carbon-intensive fossil fuel energy as soon as possible, with limited exceptions consistent with an ambitious climate neutrality pathway, the Paris Agreement, the 1.5 °C goal and best available science.

  • In July 2021, Export Development Canada (EDC), Canada’s export credit agency, committed to achieve net-zero emissions by 2050 across their business lines and in their own global operations.

  • On November 1 2021 at COP26, Prime Minister Trudeau announced that Canada is the first major oil-producing country moving to capping and reducing pollution from the oil and gas sector to net zero by 2050. To help do this at a pace and scale needed to achieve Canada’s goal of net zero by 2050, the government will set 5-year targets, and will also ensure that the sector makes a meaningful contribution to meeting Canada’s 2030 climate goals. In a letter sent from Ministers Guilbeault and Wilkinson, the government is seeking the advice of the Net-Zero Advisory Body on how best to move forward on this approach.

  • Since 2015, the Government of Canada has invested over $100 billion in clean growth. The Government of Canada’s existing climate actions put Canada on a path to exceed its previous target and allowed the government to set an ambitious new target of 40%-45%reductions below 2005 levels by 2030 earlier this year. With new 2030 mitigation targets this year from the Canada, Japan and the US, combined with ambitious action from the EU and UK countries accounting for more than half of the world’s economy have now committed to the pace of emission reductions required globally to limit warming to 1.5°C.

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