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.
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.
Canada is the largest provider of government support for oil and gas production per unit of GDP, providing more than any other country in the G7, despite repeated pledges to end fossil fuel subsidies, new research has revealed.
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.
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.
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.