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Don't be fooled: the "sovereign wealth fund" announced by the Federal Government is NOT a Norway-type sovereign wealth fund, as Richard Brooks points out in a thread here. We're deeply concerned it is actually a way to use taxpayer money to back oil and gas expansion - like a new west coast oil pipeline and LNG export projects - rebranded misleadingly as a 'sovereign wealth fund.'
Adding to that concern the government has just issued new oil and gas subsidies in today's mini-budget while a wind/solar/batteries plan remains suspiciously absent.
The new "sovereign wealth fund" is really the OPPOSITE of Norway's: the Norwegian fund takes from oil and gas revenues and invests broadly - in part to serve as a backup given the volatility of oil and gas prices. The "Sovereign Wealth Fund" announced by Canada takes from public money and then invests it in projects that would likely include high risk oil, gas and LNG projects (especially since transferring risk off of corporations is a key goal).
Again new oil, gas and LNG projects will not have a market by the time they are built and are therefore economic dead-ends (and terrible public investments). The Iran war has accelerated the global transition to renewables by pushing countries to get off oil and gas - further hurting the economic viability of oil and gas expansion.
Sierra Club Canada's concerns were quoted alongside others in The Energy Mix, Global News, and the National Observer. Climate action and climate justice are not secondary issues for Canada right now. Climate is the canary in the coal mine: If governments won't address an issue as serious as climate change, regulate and tax corporate profits instead of making pointless gas tax pauses, nor take renewable action because of corporate pressure then we can't expect governments to act on anything else.
Case in point, while talking a big game on affordability, the Federal Government agreed to cover up to $1 billion in fees for oil profiteers Equinor and BP (whose profits just doubled) but shut the door on offering pharmacare to Newfoundland and Labrador.
There's a reason no private sector proponent has come forward to back a new west coast oil pipeline - it's a bad idea - and the spin was originally that the government thought the pipeline was never going to happen and the PM was just playing 4D chess.
But the tune on that has changed recently, at least regarding financing, with Energy Minister Tim Hodgson announcing a west coast oil pipeline could receive federal financing via the Indigenous loan guarantee program. It would be a big financial loss for all involved - especially Indigenous communities.
Public funding for oil and gas is NOT popular with Canadians: fewer than 1 in 5 Canadians want their tax dollars going to largely foreign-owned companies to build more LNG projects. 56% of Albertans would rather see Canada become a renewable energy superpower, and a majority of Canadians continue to oppose subsidies to oil and gas corporations and see the transition to renewables as more important than ever in light of U.S. aggression.
This new wealth fund comes amid public sector cuts that put Canadians at risk and oil and gas corporate profiteering that's hurting Canadians at the gas pump.
The Federal Government is considering unlocking the full value of federal assets and using asset recycling to grow the fund which "typically involves the leasing or selling a government-owned asset to private sector investors." Selling public assets to private entities, so we can shield other corporations from risk with the resulting funds, is a prospect that should concern us all.
The government needs to do more to help support - not cut - journalism if we want a healthier offline (and online) world. To get young people into the trades, we must build the renewable future of energy rather than sink money into the past of energy.
Sadly, while consultations on the wealth fund are set to happen, we've already seen that the federal government is largely interested in hearing from corporate voices - excluding green groups when it came to AI.
You DO have power though: instead of waiting to see what happens, let's pro-actively try to shape the details. You can call your MP and insist that:
- Any "sovereign wealth fund" must exclude investments in oil, gas and LNG projects as well as nuclear dead-ends.
- Instead any fund should focus on renewables like wind and solar and battery storage.
- The fund shouldn't come at the expense of a strong public sector or via cuts to public services: we could institute a windfall profits tax on oil and gas corporations instead.
You can also take part in demonstrations when they occur - like the recent No More Cuts rally in Montréal pictured above and events like those listed below. And please also talk with others and spread the word. | 
