Reforming Export Development Canada: Climate-Related Risk Management and the Low Carbon Transition is an important new report released on June 9, commissioned by advocacy groups Above Ground and Oil Change International. The report analysis was conducted by consultancy Horizon Advisors, who calculate that the crown corporation Export Development Canada (EDC) has provided roughly $45 billion in support for the oil and gas sector since 2016, compared to $7 billion for clean technology. “These investments not only undermine Canada’s international climate efforts but also increase EDC’s exposure to carbon risks.” The report recommends that the government amend the Export Development Act to bar EDC from supporting any fossil fuel energy projects, including new fossil fuel infrastructure such as pipelines, and that the agency should “stress-test its investment decisions against Canada’s climate targets.”
The Reforming Export Development Canada report is not the first time EDC has been examined for its fossil-friendly investment strategy and criticized for undermining Canada’s climate change progress. Oil Change International and Above Ground published Risking it All: How Export Development Canada’s Support for Fossil Fuels Drives Climate Change in 2018, which documents investments of more than $10 billion a year to oil and gas between 2012 and 2017 ( twelve times more support than it offered for clean technologies).
Fossil fuel companies cashing in on Covid-19 Recovery Funds in Canada and worldwide
Dianne Saxe, the former Environmental Commissioner of Ontario, cited the 2018 Risking it All report in her April 2020 Opinion piece in the National Observer, reacting to the federal $750 million Emissions Reduction funding as part of the Covid-19 Recovery stimulus. Environmental Defence voiced similar suspicions in their April response : “… hidden inside this new law were changes that will make it easier for Canada’s export credit agency, Export Development Canada, to funnel billions more towards domestic oil and gas operations — without public scrutiny.”
And sure enough, following the recovery stimulus announcement, in May EDC signed an agreement to loan up to $500 million to Coastal GasLink pipeline – the same pipeline project which Wet’suwe’ten First Nations had blockaded, causing RCMP arrests which triggered Canada-wide solidarity protests and crippling rail blockades in Ontario and Quebec in the winter of 2020. (And despite objections from the Wet’suwe’ten Hereditary chiefs, reported in the Toronto Star ). “Meet Export Development Canada , the secretive crown agency financing the big oil bailout” (May 27) is a blog by Environmental Defense Canada, calling out EDC investments and calling for greater transparency.
Oil Change International and Friends of the Earth U.S. address this ongoing issue in Still Digging: G20 Governments Continue to Finance the Climate Crisis , released on May 27. From the Oil Change International Press release: “G20 countries have provided at least $77 billion a year in public finance to oil, gas and coal projects since the Paris Climate Agreement was reached. This government-backed support to fossil fuels from export credit agencies, development finance institutions, and multilateral development banks is more than three times what they are providing to clean energy. China, Japan, Canada, and South Korea are the largest providers of public finance to oil, gas, and coal, together making up over two-thirds of the G20 total.” The report is endorsed by Environmental Defense Canada and Climate Action Network Canada , among many others.
From Still Digging, a warning:
“with the health and livelihoods of billions at immediate risk from Covid-19, governments around the world are preparing public spending packages of a magnitude they previously deemed unthinkable.…. The fossil fuel sector was showing long-term signs of systemic decline before Covid-19 and has been quick to seize on this crisis with requests for massive subsidies and bailouts. We cannot afford for the wave of public finance that is being prepared for relief and recovery efforts to prop up the fossil fuel industry as it has in the past. Business as usual would exacerbate the next crisis—the climate crisis—that is already on our doorstep.”