Feds Approved Over $4.4 Million in Climate Subsidies for One of Canada’s Most Profitable Companies: Records

CN Rail trains are shown at a train yard in Vaughan, Ont., on June 20, 2022. The Canadian Press/Nathan Denette

The federal government approved over $4.4 million in climate subsidy payments last year for the Canadian National Railway Company (CN), one of Canada’s largest railway companies and most profitable corporations, records show.

The Department of Natural Resources disclosed in an Inquiry of Ministry tabled in the House of Commons on June 19 that it awarded CN $4,425,000 in federal funding on Nov. 28, 2022, to install over 60 electric vehicle (EV) charging stations in Ontario, Quebec, and British Columbia, as first reported by Blacklock’s Reporter.

“The purpose of this agreement is to increase awareness, availability and use of lower carbon vehicles and fuels in Canada by supporting the installation of 12 electric vehicle chargers in Quebec, 42 in Ontario and 8 in British Columbia,” Natural Resources Canada (NRCan) wrote in the inquiry.

It added that the funding was released to CN under the federal “Contributions in Support of Clean Fuels, Transportation and Industry” program.

Ottawa says its Canada’s strengthened climate plan, announced in December 2020, was reaffirmed in its 2021 budget with a $1.5 billion investment over five years to establish a Clean Fuels Fund intended to “de-risk the capital investment required to build new or expand existing clean fuel production facilities (including facility conversions),” among other support and resources being made available to meet its goal of net-zero emissions by 2050.

The information in the inquiry was released in response to an order paper question submitted by Conservative MP Warren Steinley on May 2. Steinley requested details “with regard to repayable loans and repayable contributions over $1 million given out by the government since January 1, 2019.”

The government’s funding to CN last year came even as the company posted record revenues of $17.1 billion that year, which was up 18 percent from the previous year, according to its 2022 annual report.

“CN once again delivered solid operating and financial performance in 2022, generating strong earnings per share and free cash flow,” the company wrote in the report.

“We delivered for our shareholders in 2022 by returning $4.7 billion through our share repurchase plan and by increasing the Company’s quarterly dividend by 19%.”

Other Subsidies

NRCan also disclosed in the Inquiry of Ministry that it awarded millions in federal subsidies to other large companies over the past two years to install EV charging stations under the same “Contributions in Support of Clean Fuels, Transportation and Industry” program.

The federal department in 2021 awarded Tesla Motors Canada (TMC) over $5 million to install 78 EV chargers in B.C. and 51 such chargers in Saskatchewan and Alberta.

In 2022, TMC received another nearly $4.8 million to build 64 EV chargers in Saskatchewan and Manitoba and 57 in Ontario.

NRCan also awarded Shell Canada over $3.9 million in 2021 to build 79 EV fast-charging stations across the country.

The same department said earlier this year in a separate Inquiry of Ministry that it expects Canada’s power grid will have to expand by 23 percent in the coming years to support all of the new EV charging stations being installed nationwide.

Tara MacIsaac contributed to this report.