Federal government approves new, massive $20 billion loan for Trans Mountain Pipeline

Statement by Julia Levin, Associate Director, National Climate

Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People –Yesterday, the Government of Canada quietly posted a new $20 billion loan for the Trans Mountain Expansion Pipeline (TMX).

The newest subsidy for TMX brings the total to $50 billion in taxpayer money that has been loaned out to pay for this project. This newest massive loan will only benefit CEOs from the oil and banking industry, while Canadians – already struggling with an affordability crisis – will be left on the hook to cover the costs. 

This newest loan is also a clear violation of the federal government’s promise not to provide further public money to the project. It brings the total amount of financial support given to the oil and gas industry by the federal government last year to $28.5 billion. 

Oil industry CEOs and their political supporters have been quick to exploit the current uncertainty sparked by President Trump’s tariff threat by insisting the answer is more oil and gas pipelines. Let TMX be a warning: it’s taxpayers who end up paying the price, as multinational, foreign-owned companies reap the rewards. More fossil fuel infrastructure is not a winning strategy for Canadians or the planet.  

Oil and gas companies never let a crisis go to waste. We’ve seen it before, for example in response to the crisis in Ukraine. The response from the fossil fuel industry is always the same: do away with regulations, build more pipelines, remove limits to pollution and scrap environmental assessments. Of course, none of those things would actually help with the current situation. And what they’re not admitting is that our dependence on fossil fuels has made us more vulnerable to geopolitics. The way to break that dependence is to transition to renewable energy and real energy security. We need to diversify our economy because the costs of oil are just too great for Canadians.

Background Information

• Although the loan was dated to December 13th, it was only made public and published online yesterday on January 30th.
• The loan is being provided through Export Development Canada’s Canada Account, which is administered by the crown corporation but governed by the federal Cabinet.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Tamara Latinovic, Environmental Defence, media@environmentaldefence.ca