Recovery Through Reform: Advancing a hydrogen economy while minimizing fossil fuel subsidies

This policy brief by the International Institute for Sustainable Development (IISD) examines the intersection of Canada's national hydrogen strategy and its commitments to phase out inefficient fossil fuel subsidies. It argues for a high threshold for justifying blue hydrogen subsidies to ensure alignment with net-zero goals by 2050.

• The author warns that blue hydrogen projects may face a competitive disadvantage by 2030 and notes that funding for carbon capture projects already constitutes a significant source of fossil fuel subsidies within Canadian jurisdictions.
• The IISD recommends that the Canadian government ensure hydrogen subsidies align with the 2025 goal to phase out inefficient fossil fuel subsidies and the 2050 net-zero target. The brief suggests improving transparency regarding tax expenditures and direct spending and following the example of Germany and Spain, which prioritize green hydrogen.
• The brief concludes that government assistance should be denied to hydrogen based on natural gas that lacks significant carbon capture and storage (CCS). Subsidies for blue hydrogen should only be granted if it matches the environmental performance and emission intensity of green hydrogen and is cost-competitive or cheaper.

APA

,, E. B. (2021). Recovery Through Reform: Advancing a hydrogen economy while minimizing fossil fuel subsidies. International Institute for Sustainable Development. https://www.iisd.org/publications/hydrogen-economy-fossil-fuel-subsidies

Chicago

,, Estan Beedell. Recovery Through Reform: Advancing a hydrogen economy while minimizing fossil fuel subsidies. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/hydrogen-economy-fossil-fuel-subsidies.

Wikipedia

{{cite report |last1=, |first1=Estan Beedell |title=Recovery Through Reform: Advancing a hydrogen economy while minimizing fossil fuel subsidies |publisher=International Institute for Sustainable Development |date=25 February 2021 |url=https://www.iisd.org/publications/hydrogen-economy-fossil-fuel-subsidies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{2021recovery, author = {,, Estan Beedell}, title = {{Recovery Through Reform: Advancing a hydrogen economy while minimizing fossil fuel subsidies}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = feb, url = {https://www.iisd.org/publications/hydrogen-economy-fossil-fuel-subsidies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }