Recovery Through Reform: Assessing the climate compatibility of Canada’s COVID-19 response in 2020

The document analyzes Canada's 2020 COVID-19 recovery spending, noting a higher commitment to clean energy (CAD 14.7 billion) than fossil energy (CAD 3.6 billion) according to Energy Policy Tracker data. However, it highlights significant transparency gaps regarding credit support from public finance institutions like EDC and BDC. Compared to France, Germany, and the UK, Canada's per capita investment in electric vehicles is lower, while its investment in building retrofits is relatively high. The brief warns that Canada's hydrogen strategy leans toward 'blue hydrogen' (fossil-based) while European peers prioritize 'green hydrogen'. It recommends applying strict 'green strings' to stimulus, phasing out fossil fuel subsidies, and aligning ambition with international standards.

• Between March and December 2020, the Canadian federal government committed at least CAD 14.7 billion to "clean" energy, while committing CAD 3.6 billion to "fossil" energy and CAD 4.7 billion to "other" energy.
• Federal fossil fuel subsidies increased to CAD 1.9 billion in 2020, up from CAD 600 million in 2019, partly due to pandemic responses; this included CAD 320 million for offshore oil production in Newfoundland without clear conditions.
• There is a lack of transparency regarding the total support provided to high-carbon sectors through public finance institutions; for example, Export Development Canada (EDC) provided approximately CAD 1.2 billion in loans, credit insurance, and bonding support for the oil and gas sector by early December 2020.
• Canada's per capita investment in electric vehicles (USD 14) is significantly lower than that of the United Kingdom (USD 53), Germany (USD 76), and France (USD 20).
• Canada's per capita investment for building retrofits (USD 118) is relatively high compared to France (USD 110), the United Kingdom (USD 76), and Germany (USD 27), though the Canadian commitment is spread over seven years compared to France's two-year timeline.
• Unlike France and Germany, which prioritize renewable ("green") hydrogen, Canada's hydrogen strategy emphasizes fossil fuel-based hydrogen with carbon capture ("blue hydrogen") in the short term to transform the oil and gas industry.

APA

Corkal, V., & Beedell, E. (2021). Recovery Through Reform: Assessing the climate compatibility of Canada’s COVID-19 response in 2020. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-02/climate-canada-covid-19-response.pdf

Chicago

Corkal, Vanessa, and Estan Beedell. Recovery Through Reform: Assessing the climate compatibility of Canada’s COVID-19 response in 2020. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-02/climate-canada-covid-19-response.pdf.

Wikipedia

{{cite report |last1=Corkal |first1=Vanessa |last2=Beedell |first2=Estan |title=Recovery Through Reform: Assessing the climate compatibility of Canada’s COVID-19 response in 2020 |publisher=International Institute for Sustainable Development |date=February 2021 |url=https://www.iisd.org/system/files/2021-02/climate-canada-covid-19-response.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{corkal2021recovery, author = {Corkal, Vanessa and Beedell, Estan}, title = {{Recovery Through Reform: Assessing the climate compatibility of Canada’s COVID-19 response in 2020}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = feb, url = {https://www.iisd.org/system/files/2021-02/climate-canada-covid-19-response.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }