A federal program meant to cut greenhouse gas emissions has failed to deliver results despite billions in subsidies, according to a Department of Environment audit. The Low Carbon Economy Fund, once hailed as proof of Canada’s climate leadership, has seen its emission targets repeatedly lowered while most of its budget was left unspent.“Higher than expected project delays, cancellations and withdrawals impacted the program’s ability to meet established greenhouse gas reduction targets within planned timelines,” said the Evaluation Of The Low Carbon Economy Fund, per Blacklock's Reporter. “A robust uncertainty analysis could help to ensure that at least some of these challenges are integrated into the analysis used to estimate a project’s emission reduction.”Launched in 2016 with a $2 billion budget—later raised to $2.2 billion—the Fund was created to subsidize corporate green retrofits. Auditors noted it was “launched quickly without meaningful engagement of provinces,” and so many projects collapsed that the budget was later reduced to $820 million.The program was first promised to cut 10 million tonnes of emissions by 2030, a target later cut to 7 million, then 3.9 million tonnes. Even with the lower bar, auditors say the program is not on track, blaming “external disruptions such as the Covid-19 pandemic, global supply chain issues and geopolitical conflicts.”.The jobs promise has also fallen flat. Ottawa initially claimed the Fund would create 115,200 jobs by 2030, a figure since revised down to 34,500.Recipients of subsidies included Labatt Brewing Co., which received $250,000 to replace a diesel brewery at a St. John’s plant. Then-environment minister Steven Guilbeault in 2022 called the project “a good example of the climate leadership that will be supported.” Loblaw Companies Ltd. received $10.1 million, records show.“CEOs are rubbing their hands together because the money is pouring in,” said New Democrat MP Alexandre Boulerice (Rosemont–La Petite Patrie, Que.), who requested disclosure of the spending.Cabinet has defended the program as sound public spending. “We’re willing to look at anything really, you know, if it seems like it’s a good idea and it can help us lower emissions,” then-natural resources minister Seamus O’Regan told a 2021 Commons hearing.
