Windfall tax on fossil fuel profits could be win for affordability and climate crises

OTTAWA | TRADITIONAL, UNCEDED TERRITORY OF THE ALGONQUIN ANISHNAABEG PEOPLE — A Parliamentary Budget Officer’s analysis of windfall oil and gas profits that Canada could tax like other countries highlights a new opportunity for a win on the affordability and climate crises.

Following a private member’s motion from MP Mike Morrice, today the PBO released its analysis of the proposed windfall profit tax on the fossil fuel industry. It estimates that more than $4 billion would be generated in revenue for the fiscal year 2022 by taxing fossil fuel profits over $1 billion.

The oil and gas industry’s profits in 2022 is estimated at $38.3 billion – double 2021’s profits.

The proposal aims to extend the Canada Recovery Dividend, which taxed the banking and life insurance industries for its profiteering off Canadians during a time of economic hardship.

Tom Green, senior climate policy adviser, David Suzuki Foundation, said:

“The fossil fuel industry has made the affordability crisis harder for people in Canada, contributing to higher inflation and price-gouging people at the gas pump, all while making obscene profits.

“A windfall profit tax would be a win for both the affordability and climate crises. This has already been rolled out by other countries including many in the European Union. These windfall profits are largely the result of companies profiting off surging energy prices due to the Russian invasion of Ukraine. By taxing these profits, the federal government will have more money for proven solutions like public transit and building retrofits, which both reduce the cost of living and help the climate.

“The fossil fuel industry is trying to have it both ways: raking in huge profits off the backs of people in Canada, while saying it can’t pay for emissions reductions. These corporations have been taking care of their shareholders rather than cleaning up their pollution. That’s why – among other things – we need a cap on oil and gas emissions by the end of this year.”

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For more information or media interviews, please contact:

Melanie Karalis, mkaralis@davidsuzuki.org, 548-588-1279