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.
The International Institute for Sustainable Development (IISD) and Oil Change International (OCI) hosted a Chatham House Rule round table discussion on the just and managed transition in May 2018. This discussion paper highlights key outcomes from this round table for the purposes of informing continuing conversation.
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.