Activist Claim: U.N. boss claims oil and gas industry is raking in billions while wrecking the climate.
The Facts: Canadian oil and gas companies are paying billions in taxes, investing heavily in carbon tech to reduce global environmental impacts, and already produce some of the cleanest energy in the world.
‘Feasting on billions while our planet burns’: UN calls for windfall tax on fossil fuel firms
Here are some facts and sources to have a reasonable conversation about windfall taxes:
- Canada’s oil and gas royalty and tax regime already provides for windfall taxes on profits. According to RBC, oil and gas companies will pay $48 billion to governments in 2022, a 200% increase from 2021. Royalties and taxes are estimated to reach $64 billion in 2023.
- Canada’s energy industry paid over $505 billion in federal, provincial and local taxes, and royalties, since 2000.
- This year of “windfall” profits follows half a decade of losses. Between 2015 and 2020, the Canadian oil and gas industry lost a collective $137.6 billion.
- Canada is a world leader in carbon tech, investing heavily to reduce impacts of oil and gas production and maintain valuable benefits. According to the U.N.’s International Panel on Climate Change, carbon tech solutions will capture almost as many emissions as renewables will reduce by the end of the century.
- A recent report from a global consulting firm, Wood Mackenzie, shows Canada is leading in carbon reduction tech. If all proposed projects came online, they could reduce up to 115 million tonnes of CO2, or 60% of Canada’s 2030 goal of 200 million tonnes reduced. Along with other measures, this helps reduce our emissions output even more.
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