Oil and Gas Secure Bulk of CleanBC Funds
Oil and gas companies have received the majority of CleanBC funding, raising concerns that public money is subsidizing industries already contributing heavily to climate pollution. Roughly $95.3 million — or 76 percent of last year’s total $127.7 million allocation — went directly to fossil fuel producers in northeastern B.C.’s Montney gas field. These companies used the money for carbon capture initiatives and BC Hydro connections rather than burning gas to fuel operations.
Critics argue the funding, derived from carbon tax revenues collected from large emitters, was designed to push businesses toward greener practices. However, many now believe it is reinforcing reliance on fossil fuels instead of fostering a transition to clean energy.
Critics Call it “Greenwashing”
Melissa Lem, president of the Canadian Association of Physicians for the Environment, described the move as government “greenwashing.” She argued the fossil fuel industry, responsible for 20 percent of B.C.’s emissions, already has “ample resources” and does not need subsidies.
“The bottom line is wealthy fossil fuel billionaires do not need money back from the B.C. government,” Lem said. She likened it to taxing cigarette makers and then refunding them to add filters — a move she argued does little to protect public health.
Health and Climate Impacts Growing
Environmental advocates link ongoing fossil fuel production to worsening wildfires, heatwaves, and droughts across the province. The 2021 heat dome, which killed more than 600 people, is still fresh in public memory. Lem emphasized that these disasters disproportionately harm seniors and vulnerable communities while straining healthcare resources.
Instead of subsidizing oil and gas, she urged the province to prioritize renewable energy investments that directly protect people’s health and reduce emissions.
Government’s Position
Energy Minister Adrian Dix defended the CleanBC funding program, saying it helps industry decarbonize and positions B.C. as a leader in the global clean energy shift. Officials stressed that projects undergo competitive evaluation, and funding is tied to emission reduction targets. If those targets are not met, funds must be returned.
Since 2019, $368 million has supported 173 projects, which the province estimates will cut 14 million tonnes of emissions over ten years.
Green Party Raises Red Flags
B.C. Green Party Leader Jeremy Valeriote criticized the province for continuing to funnel money into profitable oil and gas companies. He argued the funds could instead support public transit, building retrofits, and other initiatives that benefit everyday residents while lowering emissions.
He also questioned heavy investment in carbon capture technology, calling it “unproven” and potentially a justification for more fossil fuel expansion. “It’s a dangerous gamble when what we really need is fewer emissions,” Valeriote said.
Falling Behind on Climate Targets
Despite significant spending, B.C. is not on track to meet its climate goals. Current projections show only a 21 percent emissions reduction by 2030 — far short of the 40 percent target. Likewise, the 2025 goal of cutting emissions by 16 percent will likely fall to just over two percent.
Experts, including University of Victoria climate policy scholar Katya Rhodes, suggest the program offers minimal reductions and mostly acts as a way to recycle carbon tax revenues. She argued broad, economy-wide policies such as low-carbon fuel standards, methane regulations, and zero-emission vehicle mandates are far more effective.
What’s Next?
An independent review of CleanBC is expected this fall, raising the possibility that the Industrial Fund may be restructured or even discontinued. Until then, debate continues over whether the province is prioritizing public health and sustainability — or propping up an industry many say is fueling climate chaos.
