Canada Releases Exemption-Filled Plan to Phase Out Inefficient Fossil Fuels Subsidies

Canada has become the first G20 country to commit to a plan to eliminate inefficient fossil fuel subsidies ahead of the 2025 deadline.

Yesterday, the Federal Government released their Inefficient Fossil Fuel Subsidies Self-Review Framework, and guidelines for a phase out.

Under the framework, a measure is deemed a fossil fuel subsidy if it disproportionately benefits or solely supports the fossil fuel industry.

But, they can avoid the label if they: significantly reduce emissions, support clean or renewable energy, Indigenous economic participation or abated reduction processes, or provide an essential service to a remote area or during an emergency.

Experts and opposition politicians say that those exemptions make the plan a half-measure which leaves to door open for plenty of public funds.

While the Liberal Government says that it’s impossible to gauge the financial impact, they have committed to providing $12 billion in fossil fuel subsidies through 2025.

In addition to the framework, new guidelines will determine how future public funds will be disbursed for fossil fuel projects.