The Pathways Carbon Capture and Storage (CCS) project was supposed to be a climate solution. Instead, it’s shaping up to be one of the most expensive giveaways to the oil industry in Canadian history.

As oil executives and government officials meet this week in Edmonton, Canadians should be asking why billions of dollars in public subsidies are being offered to profitable oil and gas companies for a risky and shrinking environmental return.

The proposed project would see the development of hundreds of kilometres of new pipelines and carbon capture infrastructure designed to move emissions from oilsands facilities, but this is a bad bet. It is an extremely expensive project with serious safety, environmental and Indigenous rights concerns that would only help to enrich the majority foreign-owned oilsands companies.

Let’s start with the price tag. The Oil Sands Alliance — the companies behind the Pathways CCS project — estimate that it could cost up to $30 billion to build. The governments of Canada and Alberta have jointly committed to cover up to 62 per cent of the capital costs, which could mean that Canadians will pay nearly $19 billion to cover the initial cost.

But that’s not all — in July, the Government of Canada opened the door for ongoing operational subsidies, which could mean Canadians will be on the hook for billions more.

While the costs are increasing, the climate returns get smaller and smaller. The Oil Sands Alliance used to claim that it could reduce up to 22 MT of oilsands emissions by 2030. That target has fallen drastically to. For context, Canada’s oilsands emitted 92 MT in 2024. The math just doesn’t add up. That’s $19 billion in public dollars to only cover a few days of oil sand emissions — industry greenwashing at its best.

Then there are the risks. The Pathways project would require hundreds of kilometres of pipelines carrying highly concentrated carbon dioxide across northern Alberta. If the CO2 leaks, it can displace oxygen and wreak havoc to nearby communities — similar to what took place in Satartia, Miss. in 2020, when 200 people had to be evacuated and 45 needed immediate medical treatment following an explosion from a CO2 pipeline.

This is why the NoToCO2 organization, a grassroots group of farmers, rural residents and Indigenous communities in Alberta, has been hosting town halls in rural communities along the pipeline route to raise awareness about the risks. As an asphyxiant, CO2 has the potential for real harm including an unpleasant death, in the event of a pipeline explosion. Through these town halls, attendees often hear for the first time the risk that this project poses to them and many have communicated their desire to not have the Pathways project built near them.

Storing carbon underground can also increase the risk of seismic activities, ground water and surface water contamination, and soil contamination. Yet, both the Albertan and Canadian governments have decided that Pathways CCS doesn’t require an environmental impact assessment, despite multiple requests for a federal assessment from First Nations and Metis communities whose lands are near the proposed storage hub and pipelines.

Beyond the specific issues with the Pathways project, there lies a bigger issue with the use of CCS technology. It has consistently underperformed when it comes to reducing emissions from fossil fuel facilities. On top of that, CCS does nothing for the vast majority of fossil fuel-related emissions that are released when the oil is burned.

This is not new. The federal government knows this. Yet it continues to promote the Pathways project. But they don’t have to.

Prime Minister Mark Carney and Premier Danielle Smith can instead invest in real solutions that can make Canadian and Albertan lives better. These solutions include building out a cleaner electricity grid, public transportation, renewable energy and infrastructure, affordable housing and building retrofits. All of these options create good sustainable jobs without increasing our dependence on volatile fossil fuels.

There will be a lot of hoopla around carbon capture in Edmonton, but Canadians want to know: Will our elected officials keep subsidizing false solutions like Pathways that only enrich wealthy oil and gas companies? Or will they invest in solutions that can make life better for Canadians?

Amil Shapka is an affected landowner, concerned community advocate and co-founder of No CO2 Pipelines Alberta.

Aly Hyder Ali is senior program manager, oil and gas for Environmental Defence.