Canada supports fossil fuels ten times more frequently during pandemics .

Alberta Premier Jason Kenney stands next to a pipe destined for the Keystone XL pipeline on July 3, 2020.
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Government of Alberta There is a growing consensus around the globe that any economic stimulus should prioritize sustainability. This viewpoint has garnered support not only from environmental advocates but also from unexpected allies, including Nobel laureates and the conservative International Energy Agency (IEA), all urging governments to utilize stimulus packages for decarbonization efforts. The rationale is clear: during the last significant economic crisis, a sharp increase in fossil fuel consumption followed. Take a look at the initial chart. Despite numerous commitments to combat climate change, fossil fuel use continued to climb steadily.
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The Great Recession of 2008-2009 resulted in the only decline in global fossil fuel consumption in three decades. At that moment, there was hope that governments would direct their sizable stimulus efforts toward creating a climate-resilient economy. To understand the real outcome, consider the following chart. Since the pandemic began, Canada has allocated nearly ten times the G20 average for fossil fuel support, totaling $12 billion per capita. Instead of fostering a climate-conscious recovery, fossil fuel consumption skyrocketed in 2010, reaching record levels. In the years since, despite widespread protests, international summits, and advancements in renewable energy, humanity has consistently increased fossil fuel use year after year.

Now, as the COVID-19 pandemic grips the world, the IEA forecasts that the global economic downturn may lead to an eight percent decline in fossil fuel consumption this year, as indicated by the dotted blue line on the chart. But what happens next? The IEA warns that "a similar rebound in emissions is anticipated after this crisis unless governments prioritize clean energy transitions in their recovery plans." Economic stimulus is more than just a chance to shift toward a net-zero economy; it is essential that we avoid deepening our climate crisis as we did after the last recession. We must remember that the climate is indifferent to how much clean technology we deploy—it only cares about the carbon emissions from fossil fuel combustion.
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Thus, the pertinent question for every government is: what is your expenditure on fossil fuels during this recovery? Fortunately, a new coalition is dedicated to monitoring the financial commitments made by the world's largest economies. Utilizing data from the Energy Policy Tracker, we've mapped out new government support for fossil fuels across the G20 since the COVID-19 crisis began.
(For equitable comparisons, all figures are reported in USD per capita.)
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As illustrated in the initial G20 chart, Canada leads in fossil fuel support. With nearly ten times the G20 average in per capita spending, Canada has committed $12 billion in new fossil fuel initiatives this year. Only France, due to its substantial Air France bailout, surpasses Canada in spending per person. The chart also highlights a small green cap atop Canada's bar, denoting the funds committed to clean energy (again, per capita). The discrepancy in prioritization is striking. It is important to note a few key points here: First, this is an ongoing tally of financial commitments made since the pandemic's onset. The figures for clean and fossil energy will continue to rise as new policies are implemented. The coalition updates the tracker weekly. Second, the Energy Policy Tracker accounts only for money explicitly designated for energy, meaning that general spending benefitting the energy sector is not included. Therefore, actual support is likely higher. Lastly, as the coalition emphasizes, "these public money commitments are additional to many previous government policies supporting various energy types before the COVID-19 pandemic." Returning to the charts, you might be curious about the specifics. The following chart illustrates the top three categories for fossil energy support: aviation, ground transportation (which encompasses funding for gasoline and diesel vehicles, as well as highway and bridge expansions), and the fossil fuel industry itself. Notably, the aviation sector is the primary beneficiary of new public funds for fossil fuel consumption. However, Canadian governments have primarily directed their public financial resources towards the fossil fuel industry itself. Interestingly, despite widespread media coverage regarding President Donald Trump's bailouts for U.S. coal and oil and gas sectors, actual financial commitments have been limited.

Instead, the majority of Trump's support for fossil industries has stemmed from regulatory rollbacks and the easing of environmental restrictions. Amid ongoing discussions in the U.S., the next chart denotes the number of additional policies aiding fossil fuels where the monetary value remains unspecified. For Canada, only one clean energy policy currently exists, visualized as a green bar above. The media should scrutinize this issue more closely, especially in light of recent reports detailing significant cuts to environmental monitoring in the oilsands. The Energy Policy Tracker encompasses policies from both national and provincial governments. In Canada, provincial administrations hold a notably significant role, as the next chart illustrates. Here's a positive note: the federal government has placed a higher emphasis on supporting clean energy than the national figures might suggest. Much of its fossil fuel funding is directed toward cleaning up abandoned oil wells—though it remains a subsidy for the oil and gas sector, there is at least a public interest component. In contrast, Ontario has invested double the federal figures in fossil fuel support by acquiring fossil gas power plants and allocating nearly two billion dollars for highways and bridges. Alberta's commitments exceed federal numbers by over threefold, particularly with investments in the Keystone XL pipeline and loan guarantees planned for next year.

It's notable that we've continued to utilize per capita figures, so provincial spending per resident is much higher. For instance, Alberta's fossil fuel support translates to $1,370 per Albertan — significantly above average. If you wish to compare Alberta and Ontario's expenditures to those of entire G20 nations (using these conservative per capita figures), check out the next chart. Here, we've broken down the Canadian bar to showcase public financial commitments by Alberta, Ontario, and the federal government, as well as their respective allocations. It becomes apparent how these provinces are nearly topping the G20 fossil fuel expenditure charts individually. In closing this sobering overview of Canadian government support for fossil fuels amidst the pandemic, we must recognize that the current situation is not merely a consequence of COVID-19. The final chart demonstrates that, based on annual fossil fuel consumption, Canada ranks second only to Saudi Arabia among G20 nations regarding total fossil fuel use per capita. Both countries fall within the top one percent globally, consuming more fossil fuels per person than 99 percent of the world's population.

Unlike our counterparts in the United States, European Union, and United Kingdom, Canada has yet to initiate any reduction in fossil fuel consumption. In the coming months, Canadian governments are set to announce additional COVID-19 recovery spending. It remains to be seen how prioritization will be allocated to the clean energy transition. While a green stimulus is undoubtedly preferable to further fossil fuel support, our immediate focus must be on extinguishing the current fire. Canada still lacks a definitive plan to meet its obligations under the Paris Agreement, let alone achieving the federal commitment to net-zero carbon emissions by 2050. Thus, if economic stimulus is on the agenda, it must be environmentally sustainable. But more crucially, we must begin to quench the ongoing crisis.


National observer

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