Foreign, corporate owners control fossil fuel expansion in Canada

Ownership of Canada's largest fossil fuel firms is increasingly concentrated among a small subset of predominantly foreign and corporate entities. These equity holders exert a great deal of influence over the direction of the fossil fuel industry in Canada. While they could use their voices to push for change, a recent study shows that they benefit financially from the expansion of environmentally destructive endeavours.

These financial actors have a vested interest in maintaining existing oil and gas subsidies and pushing for expansion of the industry. However, the authors of this study argue that specific supply-side interventions could be used to disincentivize private investment in fossil fuel production, and even to compel investors to support the transition to a low-carbon economy.

Environment and Climate Minister Steven Guilbeault has announced a plan to phase out inefficient oil and gas subsidies, yet the new guidelines list specific exemptions to these restrictions on government spending. Major investors in the oil and gas industry are likely to lobby to use these exemptions to their advantage. However, certain supply-side interventions may be able to limit the possible returns on further fossil fuel investments or to redirect capital towards more sustainable activities. Reducing risk to investors may help prevent further carbon lock-in.

Refinery buildings in Alberta. Image by WinterforceMedia.