Unpacking Canada's Fossil Fuel Subsidies
Oil, gas and coal are multi-billion-dollar industries, and every year fossil fuel companies get billions in tax breaks and handouts that increase their profits even further.
In a world that’s shifting to clean energy, many of these subsidies don’t make sense, and they undermine climate change action. But taxes and subsidies are complicated. We designed this website to cut through the jargon, so you can understand what’s really happening, debate it, and propose solutions for Canadians and Canada’s economy.
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Canada, a giant oil producer, urges others to end fossil fuel subsidies
Canada is pushing the United States and other major economies to follow through on pledges to phase out "inefficient" fossil fuel subsidies, which have soared despite the growing threat of climate change. Such subsidies hit records last year, according to several watchdog groups, including one that estimated that major world economies—members of the G-20 cooperation forum—surpassed $1 trillion in subsidies for the first time in 2022. That’s a fourfold increase over subsidy levels in 2010, the year after G-20 nations agreed to phase out support for fossil fuels.
New Report Finds Carbon Capture And Storage Far Too Expensive
A new report by the International Institute for Sustainable Development found carbon capture and storage (CCS) technologies to be very expensive in Canada. According to the report, which focuses on carbon capture in the context of Canada's oil and gas industry, the climate solution’s persistently high costs are rooted in the "high design complexity and the need for customization."
CCS Can't Compete with Renewables, Won't Deliver by 2030, Report Finds
Carbon capture and storage may have an important role to play in hard-to-decarbonize sectors like iron and steel, but won't pay off for oil and gas companies without continuing government subsidies, the International Institute for Sustainable Development (IISD) concludes in an analysis released this week.
Carbon capture projects are too costly, have ‘questionable’ benefits, report finds
Technology the oil industry is counting on to reduce emissions–carbon capture and storage–is too expensive and difficult to deploy quickly enough to help Canada meet its climate commitments, a global environmental think tank says. Relying on carbon capture and storage to cut greenhouse gases from oil and gas production will mean large public subsidies for projects that are unable to compete on costs against expanding renewable energy sources, rendering the benefits "questionable," the International Institute for Sustainable Development said in a report released Thursday.