Federal Fossil Fuel Subsidies in Canada: COVID-19 edition
In total, the Canadian government provided at least CAD 1.91 billion in fossil fuel subsidies in 2020, a jump of over 200% from 2019 levels.
While there are clear social and environmental elements of some of the subsidies provided since the onset of the pandemic, this cannot be said of all measures introduced.
Canada recently unveiled a strengthened climate plan to support its target of net-zero emissions by 2050. These new efforts must be accompanied by fossil fuel subsidy reform.
Federal fossil fuel subsidies in Canada reached at least CAD 1.9 billion in 2020 in part due to responses to COVID-19. This is a threefold increase compared to 2019.
The following are recommendations to government to phase out fossil fuel subsidies as Canada recovers from the impacts of COVID-19:
- Commit to not introducing new subsidies for fossil fuels unless no other viable alternatives exist.
- Transparently release information on quantified amounts of all federal fossil fuel subsidies and support.
- Provide a public update on the G20 peer review of fossil fuel subsidies with Argentina and complete the review within the first half of 2021.
- Develop and publish a roadmap to achieve Canada’s commitment to phase out inefficient fossil fuel subsidies by 2025.
- Ensure that Export Development Canada’s policies align with Canada’s climate change and subsidy phase-out commitments.
- Include fossil fuel subsidy reform as a key element of focus in Canada’s next Nationally Determined Contribution to the Paris Agreement.
- Work with the provinces and territories to address fossil fuel subsidies at the subnational level.
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