Canada's Federal Fossil Fuel Subsidies in 2020
Summary
In 2019, Canada's federal fossil fuel subsidies totaled at least CAD 600 million, though the actual figure may be higher due to data gaps regarding tax measures and the Trans Mountain pipeline. The report notes a shift in subsidy focus from exploration to production and export infrastructure, including liquefied natural gas. It argues that these subsidies undermine Canada's net-zero 2050 goal and 2030 emissions targets. The document recommends that Canada complete its G20 peer review with Argentina in 2020, commit to no new subsidies, and integrate subsidy reform into its next Nationally Determined Contribution under the Paris Agreement.
Key insights
- Federal fossil fuel subsidies in Canada were at least CAD 600 million in 2019, but this total is likely an underestimate because it excludes tax-related subsidies and potential subsidies for the Trans Mountain pipeline and expansion.
- The focus of subsidies has transitioned from exploration toward the development of infrastructure for the production and export of fossil fuels, specifically including liquefied natural gas.
- Fossil fuel subsidies are identified as a barrier to Canada's climate goals, including its 2030 emissions reduction target and its plan for net-zero emissions by 2050.
- Canada is participating in a G20 peer review of fossil fuel subsidies with Argentina to phase out inefficient subsidies by 2025, though progress has been slow.
Cite the original document
- APA
- Levin,, V. C. G. (2020). Canada's Federal Fossil Fuel Subsidies in 2020. International Institute for Sustainable Development. https://www.iisd.org/publications/report/canadas-federal-fossil-fuel-subsidies-2020
- Chicago
- Levin,, Vanessa Corkal,Philip Gass,Julia. Canada's Federal Fossil Fuel Subsidies in 2020. International Institute for Sustainable Development, 2020. https://www.iisd.org/publications/report/canadas-federal-fossil-fuel-subsidies-2020.
- Wikipedia
- {{cite report |last1=Levin, |first1=Vanessa Corkal,Philip Gass,Julia |title=Canada's Federal Fossil Fuel Subsidies in 2020 |publisher=International Institute for Sustainable Development |date=19 February 2020 |url=https://www.iisd.org/publications/report/canadas-federal-fossil-fuel-subsidies-2020 |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{levin2020canadas, author = {Levin,, Vanessa Corkal,Philip Gass,Julia}, title = {{Canada's Federal Fossil Fuel Subsidies in 2020}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = feb, url = {https://www.iisd.org/publications/report/canadas-federal-fossil-fuel-subsidies-2020}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated