
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.
Participating experts
Funded by
You might also be interested in
Canada is sitting on 12 'carbon bombs.' Here's where they are
Just under the surface of B.C. and Alberta, in a rock formation known as the Montney Play, lies enough potential greenhouse gases to blow past Canada's 2030 emissions targets 30 times over. It's one of 12 fossil fuel reserves researchers in the journal Energy Policy have identified in Canada — called "carbon bombs" — that would each release a billion tonnes or more of carbon into the atmosphere if their resources were extracted and burned. This would be catastrophic for the world's efforts to slow rising global temperatures, the authors argue.
Record oil profits 'enough to make you ball up your fists,' says N.L. minister
After handing oil companies more than $280 million in cash during the COVID-19 pandemic, Newfoundland and Labrador’s energy minister says it’s tough to watch those same companies rake in record-shattering profits.
LNG the wrong choice at the wrong time for B.C.
As 2023 begins, B.C. Premier David Eby and his new cabinet are setting priorities and determining which policies of the Horgan government to carry forward and which to cast aside. Liquefied natural gas exports touch on a host of critical issues that Eby and key ministers are considering.
Canada commits to historic investments in clean electricity and fresh water in Budget 2023
The International Institute for Sustainable Development congratulates the Canadian federal government on the release of the 2023 federal budget.