Canada Takes Action: Phasing Out Inefficient Fossil Fuel Subsidies

Canada has released a framework to phase out inefficient fossil fuel subsidies, becoming the first G20 country to fulfill a 2009 commitment. While the framework is seen as a positive step, critics argue that it falls short by allowing government support for oil and gas projects that aim to reduce emissions through technologies like carbon capture and storage (CCS). The framework applies to existing tax and non-tax measures but does not cancel ongoing subsidy agreements. Fossil fuel activities will be exempt if they fall into specific categories, such as enabling significant emissions reductions or supporting clean energy. The move is part of a deal between Prime Minister Justin Trudeau's Liberal Party and the New Democratic Party. However, critics argue that the framework does not meet the urgency of the climate crisis and fails to address public financing of fossil fuel projects.