Canada’s Bold Initiative: Phasing Out Fossil Fuel Subsidies
Canada has taken a groundbreaking step in the global environmental scene by announcing its plan to phase out fossil fuel subsidies.
This makes Canada the first among the wealthy, high-emission nations to take such a step, according to the federal government.
This initiative of phasing out fossil fuel subsidies is seen as a significant move in the fight against climate change.
The Details of the Plan for Phasing Out Fossil Fuel Subsidies
The plan, announced by Environment and Climate Change Minister Steven Guilbeault. Aims to eliminate subsidies for fossil fuel production in Canada.
However, the plan for phasing out fuel subsidies is not absolute. There are exceptions made for subsidies that contribute to reducing carbon emissions in the sector.
The government will continue to support fossil fuel projects that significantly reduce greenhouse gas emissions, support clean energy, clean technology, and renewable energy.
And provide essential energy services to remote communities. These exceptions are as necessary adjustments in the process of phasing out fossil fuel subsidies.
Mixed Reactions to the Plan
Much of the federal government’s support for the fossil fuel sector comes from Crown corporations like Trans Mountain, the Canada Development Investment Corporation (CDEV), and also Export Development Canada (EDC).
The government is working on identifying all remaining sources of public financing. Including Crown corporations, and plans to phase out these subsidies by the end of 2024. This is a significant part of the strategy for phasing out fossil fuel subsidies.
The plan has received mixed reactions. The NDP critic for climate change and the environment, MP Laurel Collins, described the plan as a “half-measure.”
On the other hand, Environmental Defence, an advocacy group, praised the guidelines as setting a “high benchmark” for other G20 countries to follow in phasing out fuel subsidies.
From the industry perspective, Energy for a Secure Future, which promotes the natural gas sector, stated that Canada doesn’t have any inefficient oil and gas subsidies to eliminate.
They believe these projects are economically viable and deserve the same tax measures offered to other businesses in Canada.
Also they argue that the process of phasing out fossil fuel subsidies should consider the economic viability of these projects.