Canada has announced plans to achieve net-zero emissions by 2050 but is currently not on track to meet its 2030 emissions reduction target. Meanwhile, fossil fuel subsidies undermine federal action on climate change and divert important financial resources to polluting forms of energy.IISD identified nearly CAD 600 million in federal fossil fuel subsidies in 2019. Canada is currently undergoing a peer review of fossil fuel subsidies with Argentina as part of its G20 commitment to phase out inefficient fossil fuel subsidies by 2025. Progress on the peer review has been slow and needs a strong commitment to transparency.
IISD recommends that Canada should complete the peer review in 2020, release quantified information on all federal fossil fuel subsidies on an annual basis and commit to not introducing new fossil fuel subsidies. Also, Canada should accelerate the phase-out of existing fossil fuel subsidies and develop a roadmap to meet or exceed the 2025 phase-out commitment. IISD also recommends to include a subsidy reform as a key element of focus in the next Nationally Determined Contribution under the Paris Agreement, which would strengthen and support wider federal action on climate change and help Canada to meet its climate targets. To read the full report, refer to the IISD website.