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Energy Subsidies in Canada

The GSI program of work for Canada undertakes research and policy engagement on subsidies for fuel consumers and producers at the provincial and national level. It’s key focus is on identifying the scale of subsidie, and strategies for their reform and ultimate removal, in line with Canada’s commitments to the G7 and G20.

Research

Objectives
  • Reduce expenditure on fossil fuel subsidies that promote unsustainable environmental and social impacts
  • Reform subsidies to level the playing field for clean energy
  • Improve the fair social distribution of subsidy expenditure
  • Build a greater understanding of the scale of subsidies in Canada, and how these subsidies can be better allocated within the economy to benefit economic, environmental and social outcomes
Collaborations

In carrying forward this work the Global Subsidies Initiative has collaborated with a number of organizations including Equiterre, Oil Change International and Environmental Defence.

FAQ: Canada

Oil, gas and coal are multi-billion dollar businesses, yet every year fossil fuel companies get billions in tax breaks and handouts. In a world that’s shifting to cleaner sources of energy, those subsidies don’t make sense—especially when they work against the other actions we’re taking to fight climate change.

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Reports: G7 Fossil Fuel Subsidy Scorecard: Tracking the phase-out of fiscal support and public finance for oil, gas and coal

Despite their numerous commitments, not only have G7 governments taken limited action to address fossil fuel subsidies, but they have also failed to put in place any mechanisms to define and document the full extent of their support to oil, gas and coal, or to hold themselves accountable for achieving these pledges. The G7 fossil fuel subsidy scorecard aims to address this accountability gap and track, for the first time, each G7 country’s progress in phasing out fossil fuel subsidies across seven indicators.

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Reports: The End of Coal: Alberta's coal phase-out

In November 2015, the Canadian province of Alberta committed to a phase-out of coal power by 2030. The phase-out of coal power in Alberta will involve the retirement of over 40 per cent of Alberta’s 2016 installed capacity and the de facto phase-out of local thermal coal mines.

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Reports: Les subventions du gouvernement à la consommation et au développement d'hydrocarbures au Québec

The Québec Government has just announced the most ambitious GHG emissions reduction target in Canada – a reduction of 37.5% below 1990 levels by 2030. The province would like to reduce the amount of petroleum-based products used by 40% between now and 2030 and increase the total amount of renewable energy being produced by 25% above the current figure during that same period. 

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