🧵 re effective today, CANGov is "eliminating inefficient fossil fuel subsidies."
Efficient fossil fuel subsidies, presumably, can stay.
How can you tell the difference?
Read on.
Environment and Climate Change Minister @s_guilbeault announcing the policy.
2/The Assessment Framework will be used to determine which tax and non-tax measures constitute an inefficient fossil fuel subsidy.
Subsidies will be considered inefficient unless they meet one or more of the following six criteria:
3/#1 is a sop to the @ABDanielleSmith, who has been pushing hard for carbon credits for avoided emissions under Article 6.
Carbon management consultant Geoff Stiles' op-ed for @EnergiMedia explains why this is virtually impossible.
energi.media/opinion/opinion-can-alberta-earn-carbon-credits-for-exporting-its-lng/
4/He wrote a follow up after Minister @JonathanWNV acknowledged CANGov was prepared to cave to AB's demands.
Now it appears that a dubious practice may also be eligible for federal subsidies.
This is a black mark on today's announcement.
energi.media/opinion/opinion-federal-liberals-pander-to-albertas-carbon-daydreams/
5/#5 - "Support Indigenous economic participation in fossil fuel activities" - is a loophole big enough to drive a giant oil sands ore hauler through.
The oil/gas industry has done a very good job developing an indigenous supply chain AND partnering with indigenous communities.
6/This commitment has gone some way to creating an indigenous economy in northern Alberta, which is an excellent thing.
But, for the oil sands especially, EVERY activity will include "Indigenous economic participation," possibly justifying any and all FF subsidies.
7/#6 opens the door to more oil sands CCUS subsidies. $7.1 billion of investment tax credits are already provided, but industry has been pushing for more.
CANGov can now justify more subsidies as an "efficient fossil fuel subsidy."
energi.media/markham-on-energy/to-pm-trudeau-no-more-federal-money-for-alberta-ccus-until-oil-sands-project-changed/
8/CANGov depts are supposed to ensure new subsidies align with 1.5°C and don't hinder the energy transition.
But if the Article 6 debacle has taught us anything, the @JustinTrudeau Liberals will fold under enough lobbying pressure from the oil/gas industry.
9/Thus far, environmental groups are supportive of Guilbeault's new rules, but point out the many loopholes.
Neither ABGov, Smith nor her relevant ministers have commented.
@KathleenGanley of @albertaNDP did and it's a formulaic nothing burger.
10/"Canada did/didn't do ____"
"The UCP didn't properly represent Albertans at the table and force Canada to not do/do ____"
Without a coherent energy policy, narrative, or politics, the NDP are irrelevant on energy and climate stories.
Quite tiresome.
11/Five years from now, Canadians will look back on this announcement and note that not much has changed.
At least, not much will have changed because of this policy.
The energy transition, however, will have transformed Canada's energy system and O&G.