The (Public) Cost of Pollution: Ontario’s fossil fuel subsidies

This executive summary from the International Institute for Sustainable Development (IISD) details approximately CAD 700 million in public subsidies provided by Ontario for fossil fuel consumption in 2018/19. The document identifies the primary categories of these subsidies and proposes a framework for reform to transition toward a low-carbon economy.

• In the 2018/19 period, Ontario provided nearly CAD 700 million in public subsidies to support fossil fuel consumption, which the authors argue represents foregone revenue that could be used for education, healthcare, and job creation.
• The largest portion of Ontario's fossil fuel subsidies consists of tax exemptions for the aviation and rail industries, totaling CAD 320 million in 2018/19. The report notes that because these breaks are common across provinces, reform likely requires inter-provincial collaboration.
• Tax exemptions for 'coloured fuel' used primarily in agriculture amounted to CAD 225 million in 2018/19. The document suggests Ontario should find ways to support farmers through energy efficiency rather than incentivizing fossil fuel consumption.
• The Ontario government promised CAD 100 million in Budget 2018 for the expansion of natural gas. The report warns that such subsidies risk locking communities into high-carbon energy infrastructure for decades.
• The IISD recommends that Ontario undertake a published self-review of all fossil fuel subsidies, develop a phase-out action plan, establish guidelines to prevent new subsidies without thorough analysis, and engage with the Government of Canada regarding the G20 peer review of fossil fuel subsidies.

APA

Corkal, V., & Gass, P. (2019). The (Public) Cost of Pollution: Ontario’s fossil fuel subsidies. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/public-cost-of-pollution-summary.pdf

Chicago

Corkal, Vanessa, and Philip Gass. The (Public) Cost of Pollution: Ontario’s fossil fuel subsidies. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/public-cost-of-pollution-summary.pdf.

Wikipedia

{{cite report |last1=Corkal |first1=Vanessa |last2=Gass |first2=Philip |title=The (Public) Cost of Pollution: Ontario’s fossil fuel subsidies |publisher=International Institute for Sustainable Development |date=July 2019 |url=https://www.iisd.org/system/files/publications/public-cost-of-pollution-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{corkal2019public, author = {Corkal, Vanessa and Gass, Philip}, title = {{The (Public) Cost of Pollution: Ontario’s fossil fuel subsidies}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = jul, url = {https://www.iisd.org/system/files/publications/public-cost-of-pollution-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }