Who Gets the Money? The Hidden Players in Canada’s Climate Credit Scheme
It's time we asked: who’s cashing in?
Who Gets the Money? The Hidden Players in Canada’s Climate Credit Scheme
When Lethbridge council voted to reduce its PCP climate target from 40% to 20%, much of the savings came from rejecting the purchase of carbon credits—a move that spared local taxpayers over $60 million.
But it also raised a national question: Where would that money have gone?
Lethbridge avoided buying carbon credits—but across Canada, public funds are still flowing into opaque markets, questionable brokers, and scandal-plagued climate funds. It's time we asked: who’s cashing in?
The idea that municipalities must “offset” their carbon footprint by buying credits from outside projects has become baked into climate policy. It’s promoted as efficient, ethical, and forward-thinking. But behind the green branding lies a murky ecosystem of carbon brokers, ESG investment funds, and federally backed market schemes. These entities benefit from public dollars—often without local oversight or returns.
💵 Who Gets the Money?
1. Brokers and Aggregators
Carbon credits don’t sell themselves. They’re packaged and marketed by brokers like AirCarbon Exchange, Xpansiv, and Canadian firms like Will Solutions, who take a cut of every credit sold. Aggregators bundle small projects into portfolios and profit from scale.
These aren’t environmental groups. They’re traders in a speculative market.
2. Green Investment Funds
The Canada Growth Fund (CGF)—sometimes called a "green slush fund"—commits billions to backstop the price of carbon credits. This ensures there’s always a buyer, keeping the market alive—even when environmental value is unclear. Taxpayer money props up ESG investments while local services face cuts.
3. International Utilities and Conglomerates
Municipal money spent on credits often ends up with foreign energy giants, carbon capture developers, or RE100-aligned megafirms who generate credits through massive wind farms or biogas operations. These companies pocket public funds from Canadian towns with no obligation to return value.
💥 The SDTC Scandal: A Warning Shot
In 2024, the Sustainable Development Technology Canada (SDTC) fund collapsed under scandal. The Auditor General found:
$59 million given to ineligible projects
186 cases of conflict of interest
Board members funding companies they were personally tied to
This scandal halted Parliament for weeks and showed how easily “green” funding can be misused when public money flows without scrutiny.
🧮 But Wait—Aren’t We Already Net-Negative?
Much of today’s climate policy assumes Canada carries a “carbon debt.” But the facts tell a different story.
Canada’s land base absorbs far more CO₂ than we emit. Canada is already net-negative—even without offsets or restrictive climate mandates. Our forests, wetlands, peatlands, and grasslands are doing the work naturally.
So why are municipalities being pushed to spend millions on carbon credits to align with global net-zero targets?
This disconnect isn’t environmental—it’s economic. It benefits carbon credit markets, not Canadian communities.
Local taxpayer dollars are being diverted into opaque, offshore-led climate programs while Canada’s natural carbon sinks are ignored.
🛑 A Call for Local Oversight
The PCP program functions as a kind of "mini Paris Accord"—aligning local policies with global climate targets such as net-zero by 2050 and a 45% reduction by 2030. Before any municipality considers buying offsets, they must ask:
Who profits from this transaction?
What benefit returns to our community?
Why are we sending money away to claim reductions we didn’t achieve?
For municipalities already committed to a 40% reduction under PCP, we offer a practical roadmap. Councillors should consider putting forward a motion to request clarity. Here is a suggested motion based on the Lethbridge model:
Motion for Consideration:
Title: Request for Review and Cost Assessment of the PCP GHG Reduction Target
WHEREAS the municipality is a member of the Partners for Climate Protection (PCP) program, with a stated greenhouse gas (GHG) reduction target of 40% by 2030;
AND WHEREAS recent analysis by the City of Lethbridge revealed significant financial implications associated with achieving this target—particularly due to reliance on the purchase of carbon credits;
AND WHEREAS responsible fiscal stewardship and transparency require council to fully understand the costs, trade-offs, and implementation pathways associated with such targets;
THEREFORE BE IT RESOLVED THAT:
Staff be directed to prepare a report that outlines a costed breakdown of options to meet the existing PCP reduction target, including but not limited to:
Implementation costs of current PCP initiatives
The role and cost of carbon credits or green energy purchases
A comparison of alternatives, including lower reduction targets or a business-as-usual path
The report include a recommendation from administration regarding the most fiscally responsible and locally appropriate path forward.
The findings be presented at a future meeting of council, with adequate time for public delegations and community input
Local wins happened when local staff do the math, residents ask tough questions, and councils listen. It's a reminder that when communities stay informed and involved, they can shift the direction of global policy—starting right at home.
If your municipality is reviewing its PCP or FCM climate programs, KICLEI can help!
✅ Take Action
🧾 Use the KICLEI Quick Support Request Form to request:
A resolution to audit your city's carbon spending
Talking points for delegations
Local CO₂ data to counter offset narratives
Because you deserve to know who gets the money—and what your council is actually funding.
🛠 How to Get Involved
If you’re reading this and thinking, “Our council needs to take a closer look at these programs,” — you’re not alone.
Here’s how to take the next step:
🔎 Explore KICLEI’s Website
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