Canada’s New Budget Has Billions in Fossil Subsidies Disguised As Climate Action - CleanTechnica

Canada’s recent federal budget, introduced under Mark Carney, emphasizes continuity in climate-related policies rather than new initiatives, particularly extending existing tax credits for carbon capture, utilization, and storage (CCUS) and clean hydrogen through 2035 and beyond. The budget maintains substantial financial incentives—up to billions in deferred revenue—primarily benefiting fossil fuel-linked projects. Notably, the Pathways oil sands hub in Alberta could receive around $800 million annually if fully realized, with other fossil-related projects like Shell’s Polaris and Entropy’s Glacier also capturing significant shares of the credits. Non-fossil industrial users receive a much smaller portion of the support. The policy treats all captured CO₂ equally, regardless of source or economic viability, which raises concerns about effectiveness. Carbon capture makes the most sense for industries with pure or nearly pure CO₂ streams, low-cost nearby storage, and processes that cannot easily switch to electrification—such as cement production, exemplified by Heidelberg Materials’ project in Edmonton,