The bank also said the program could “perpetuate negative views against the energy industry” and be used as an example of a new fossil fuel subsidy.
Alberta Premier Danielle Smith and Energy Minister Peter Guthrie have argued that the program would increase economic activity, stimulate jobs in rural municipalities and give fossil fuel companies an incentive to prioritize cleanup. Martin Olszynski, an associate professor at the University of Calgary’s faculty of law, said in an interview Friday that instead of the pilot program, the government could ensure industry pays for its own mess by increasing both mandatory spending targets for cleanup activities and the fees the sector pays to the Orphan Well Association, which is responsible for the cleanup of oil and gas sites with no viable owner.
for the cross-border Keystone XL expansion project. The pipeline was scrapped after U.S. President Joe Biden scuttled the building permit, costing Alberta taxpayers $1.3-billion.