meeting-canada-subsidy-phase-out-goal-quebec-fr-d820f32a9a18a320.pdf

This November 2016 briefing by the International Institute for Sustainable Development (IISD) examines the role of Quebec in helping Canada meet its G7 commitment to eliminate fossil fuel subsidies by 2025. The document focuses specifically on consumption subsidies in Quebec, which it argues act as a 'negative price on carbon' and undermine the province's ambitious greenhouse gas (GHG) reduction targets.

• Canada committed in May 2016, as a G7 member, to eliminate its fossil fuel subsidies by 2025. While the federal government is leading this effort, the IISD notes that provinces grant the majority of these subsidies in Canada.
• According to IISD analysis, Canada provides 3.3 billion Canadian dollars annually in production subsidies for hydrocarbons. Consumption subsidies are also common in Canada, but these are provided exclusively by provincial governments rather than the federal government.
• Quebec has set ambitious GHG reduction targets of 20% below 1990 levels by 2020 and 37.5% by 2030. Its 2016 energy policy aims to reduce petroleum product consumption by 40% and increase renewable energy production by 25% by 2030.
• In 2015, consumption subsidies in Quebec were estimated at approximately 270 million Canadian dollars. These subsidies primarily take the form of reductions, exemptions, or refunds of the provincial fuel tax, which the IISD describes as a 'negative price on carbon' that hinders GHG reduction efforts.
• The largest fiscal expenditure for hydrocarbon consumption in Quebec is the fuel tax reduction for aircraft and rail locomotives, which rose from 68 million Canadian dollars in 2006 to nearly 100 million in 2015. Since 1972 for aircraft and 1980 for locomotives, the tax for these sectors has remained fixed at 3 cents per litre, compared to the general rates of 19.2 cents for gasoline and 20.2 cents for heating oil since 2013.
• Other significant consumption subsidies in Quebec include regional fuel tax reductions (88 million Canadian dollars in 2015) to prevent citizens in border regions from fueling outside the province, and refunds for agricultural, forestry, and mining companies (nearly 40 million Canadian dollars in 2015).
• The IISD emphasizes that reforming subsidies requires careful planning to avoid negative impacts on vulnerable communities and energy-intensive industries. Proposed mitigation strategies include gradual elimination, using savings to fund renewable energy, and providing short-term compensation or credit access for affected sectors.

APA

International Institute for Sustainable Development (n.d.). meeting-canada-subsidy-phase-out-goal-quebec-fr-d820f32a9a18a320.pdf. https://www.iisd.org/system/files/publications/meeting-canada-subsidy-phase-out-goal-quebec-fr.pdf

Chicago

International Institute for Sustainable Development. meeting-canada-subsidy-phase-out-goal-quebec-fr-d820f32a9a18a320.pdf. n.d. https://www.iisd.org/system/files/publications/meeting-canada-subsidy-phase-out-goal-quebec-fr.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=meeting-canada-subsidy-phase-out-goal-quebec-fr-d820f32a9a18a320.pdf |url=https://www.iisd.org/system/files/publications/meeting-canada-subsidy-phase-out-goal-quebec-fr.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndmeetingcanadasubsidyphaseoutgoalquebecfrd820f32a9a18a320pdf, author = {{International Institute for Sustainable Development}}, title = {{meeting-canada-subsidy-phase-out-goal-quebec-fr-d820f32a9a18a320.pdf}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/meeting-canada-subsidy-phase-out-goal-quebec-fr.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }