Canada set to end domestic subsidies for unabated fossil-fuel production

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Canada set to end domestic subsidies for unabated fossil-fuel production
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Going forward, new domestic fossil-fuel projects are only to receive federal funding if the government can square them with Canada’s climate commitments. cdnpoli

That means going forward, new domestic fossil-fuel projects are only to receive federal funding if the government can square them with Canada’s climate commitments.

It applies to financing from government departments, agencies and Crown corporations, including the Business Development Bank of Canada and Export Development Canada. The Organization for Economic Co-operation and Development said in 2021 that Canada’s domestic subsidies included $3.4 billion in tax policies and $600 million in direct grants.Article content

But in the 14 years since the initial promise, neither Canada nor the G20 has landed on a definition for “inefficient.” As recently as May 2022, Environment and Climate Change Canada officials said the definition was still being finalized.

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