The federal government’s spring economic update Tuesday formalizes a pivot in climate policy that was first made in last year’s energy agreement with Alberta.
In the 2025 budget, the Liberals promised to not make enhanced oil recovery eligible for a tax credit for the development of carbon capture and storage systems.
But 10 days after that budget passed the House of Commons it extended that tax credit to enhanced oil recovery projects in its energy memorandum of understanding with Alberta.
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Tuesday’s spring economic update proposes make that pledge official, projecting the measure will generate $395 million in federal revenue over the next three years.
Enhanced oil recovery funnels captured carbon emissions back underground to increase pressure and push more oil out of the ground.
Environmentalists see the extension of the tax credits to enhanced oil recovery as a direct subsidy of oil production, while the industry says tax credits are not subsidies and making EOR eligible for them is a game-changer.
THIS CARNEY is a DEMON, BE VERY CAREFUL WHAT YOU WISH FOR
Stop Alberta Big Oil from looting the taxpayer.
Oh look…more help for Alberta!! Where are all the Carney bashing comments now? Pretty quiet on this comment section….
If Canada is giving tax credits to oil companies, then how does that bring in revenue? Again it is reducing revenue, instead of reducing expenses. It is good for Canada, because instead of the “oil recovery project” title, it is the “Carbon capture and disposal project”. which reduces the CO2 in the oil. This is good news for the climate change worriers.
How can Environmentalists get it 100% backwards… because they are not true environmentalists, but Anti-oil lobbyists.
Environmentalists don’t like this. What a surprise. Boo Hoo.