Removing Subsidies for Fossil Fuel Exploration and Development in Canada

The document details Canada's efforts to reform fossil fuel subsidies, specifically targeting tax deductions for oil, gas, and coal exploration and development. Since 2011, Canada has reformed seven policies, including reducing deduction rates for oil sands and mining expenses, driven partly by G20 commitments. While reforms between 1990 and 2007 saved over USD 900 million, the 2011-2022 reforms are expected to save approximately USD 260 million annually. However, the document notes a 'missed opportunity' with the introduction of a new LNG subsidy in 2015 and risks of backsliding through the federal purchase and expansion of the Trans Mountain pipeline.

• Since 2011, the Canadian government has reformed or phased out seven policies that subsidized oil, gas, and coal production, primarily targeting tax expenditures for exploration and development.
• Specific tax reforms include reducing the deduction rate for oil sands property expenses from 30 to 10 per cent in 2011, and reducing the rate for pre-production expenses of new oil sands and oil shale mines from 100 to 30 per cent between 2011 and 2016.
• The financial impact of these reforms includes a combined value of over USD 900 million for policies reformed between 1990 and 2007, and expected annual savings of approximately USD 260 million from reforms implemented between 2011 and 2022.
• Canada's reform efforts are contrasted by the introduction of a new Accelerated Capital Cost Allowance for Liquefied Natural Gas in 2015 and the federal government's purchase and planned expansion of the Trans Mountain pipeline.

APA

International Institute for Sustainable Development (n.d.). Removing Subsidies for Fossil Fuel Exploration and Development in Canada. https://www.iisd.org/system/files/publications/stories-g20-canada-en.pdf

Chicago

International Institute for Sustainable Development. Removing Subsidies for Fossil Fuel Exploration and Development in Canada. n.d. https://www.iisd.org/system/files/publications/stories-g20-canada-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Removing Subsidies for Fossil Fuel Exploration and Development in Canada |url=https://www.iisd.org/system/files/publications/stories-g20-canada-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndremoving, author = {{International Institute for Sustainable Development}}, title = {{Removing Subsidies for Fossil Fuel Exploration and Development in Canada}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/stories-g20-canada-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }