Energy Subsidies in Canada

When it comes to phasing out subsidies to the production of polluting oil, gas and coal—something G-20 leaders have committed to every year since 2009—we’re seeing little progress. In fact, as fossil fuel prices have fallen, some countries have even increased subsidies in response.

Jointly prepared by IISD, OCI and ODI, this country study and accompanying data sheet compiles publicly available information on fossil fuel production subsidies in Canada in 2013 and 2014.

On June 2, 2014, the United States Environmental Protection Agency (EPA) released proposed regulations for regulating greenhouse gas emissions from electric utility generating units in the country. In the wake of its announcement, the EPA has been emphasizing that its proposed electricity rules will reduce emissions from the country’s most significant source of emissions—power plants. Conversely, the messaging from the Government of Canada has been that Canada took similar action on coal-fired plants in 2012, and that the percentage drop in emissions from those plants is likely to be proportionately greater than those proposed by Washington.

Does government support to upstream oil and gas projects benefit local communities in the Arctic? That was the topic of a panel organized by the International Institute for Sustainable Development at the Arctic Energy Summit in Akureyri, Iceland, on October 9th. The panel discussion was led by six speakers: Stewart Wheeler, Canada’s Ambassador to Iceland; Mary Simon, Inuit Tapiriit Kanatami, Canada; Mikael Anzén, Ministry of Foreign Affairs, Sweden & Head of Delegation, Sustainable Development Working Group of the Arctic Council (Mr. Anzén spoke in his personal capacity); Pauline Gerrard, Hudson Bay Inland Sea Initiative, IISD, Canada; Mikhail Babenko, WWF Global Arctic Programme, Russia; and Hjalti Jóhannesson, University of Akureyri Research Centre, Iceland.

A summary of major events in April and May 2011.

Unlike subsidies to fossil-fuel consumers, there is currently little hard data about the size or impacts of subsidies to fossil-fuel producers. The Global Subsidies Initiative’s new series, Fossil Fuels - At What Cost?, aims to rectify this situation by identifying and where possible quantifying these ‘producer subsidies’, using an internationally agreed definition of subsidy adopted by the World Trade Organization.

In the past two months, Japan has accused Canadian province Ontario of breaking WTO rules in its support for renewable energy; and the United States has launched an investigation into Chinese support for green industries more generally. Find out why in the WTO Subsidy Dispute Round-up.

A new report by the Global Subsidies Initiative (GSI) quantifies government support for biofuels in Canada, and analyzes whether this expenditure represents good value for Canadian taxpayers. Biofuels – At What Cost?