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

In 2018/19, Ontario provided nearly CAD 700 million in public subsidies for fossil fuel consumption, primarily through tax exemptions for aviation, rail, and agriculture, and spending on natural gas expansion. The report argues that these subsidies represent foregone revenue that could be redirected toward education, healthcare, and job training, while hindering the transition to a clean economy. It recommends that Ontario undertake a transparent self-review of all fossil fuel subsidies, develop a phase-out action plan, and establish guidelines to prevent new subsidies that are inconsistent with a low-carbon economy.

• Ontario provided nearly CAD 700 million in public subsidies for fossil fuel consumption in the previous year.
• The largest subsidies in Ontario are divided into three main categories: CAD 320 million in 2018/19 for aviation and rail fuel tax exemptions, CAD 225 million in 2018/19 for coloured fuel tax exemptions used in agriculture, and CAD 100 million promised in Budget 2018 for natural gas expansion.
• The report suggests that phasing out these subsidies could fund public services, specifically estimating it could provide education for 52,700 students, job training for 70,000 workers, or annual public health care for 189,000 Ontarians.
• To reform these subsidies, the document recommends that Ontario conduct a published self-review of all fossil fuel subsidies, create a phase-out action plan, and implement guidelines to ensure no new subsidies are introduced unless they are essential, time-limited, and consistent with a long-term low-carbon economy.

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} }