Two recent reports outline the subsidies provided by Canada's federal and provincial governments towards fossil fuel production.
Fossil Fuels - At What Cost? released by International Institute for Sustainable Development (IISD) uses an internationally agreed definition of subsidy adopted by the World Trade Organization to determine that Canadian federal and provincial governments provided $2.84 billion to support oil production in 2008. The federal government's share of subsidies in 2008 was $1.38 billion. Alberta was estimated at $1.05 billion, Saskatchewan at $327 million. A total of 63 subsidy programs were identified, and the study forecasts a doubling of subsidy amounts by 2020 if government policies stay the same.
Climate Action Network Canada released, Fuelling the Problem, November 4, 2010. The report describes problems with tax breaks for the fossil fuel industry, outlines global initiatives to eradicate fossil fuel subsidies, and urges the Canadian federal government to eliminate fossil fuel subsidies in the upcoming 2011 budget.
"As the world moves towards a clean energy economy, ongoing tax breaks and subsidies to the fossil fuel sector are taking Canada in the wrong direction," declared Steven Guilbeault of Equiterre.
"The reality is this government isn't fighting climate change, it is fuelling the problem and the 2011 budget is an opportunity to move the country in the right direction," added Graham Saul of Climate Action Network Canada.
View November 2010 IISD report, Fossil Fuels - At What Cost? (PDF)
View November 2, 2010 Winnipeg Free Press article
View November 2, 2010 IISD press release
View November 3, 2010 CTV News article
View November 4, 2010 Climate Action Network press release
View November 4, 2010 Climate Action Network report, Fueling the Problem (PDF)
View November 4, 2010 National Post article
View November 8, 2010 Rabble.ca article
Source: IISD, CANet