Climate Action Network Canada launched an "Open Letter to Prime Minister Harper and Minister Flaherty: An appeal to end special tax breaks to oil, coal and gas companies" on November 10, 2010, encouraging organizations to sign-on in the lead up to the 2011 federal budget.

"Prime Minister Harper hands out more money in tax breaks to oil and gas companies every year than the entire operating budget of Environment Canada," says Steven Guilbeault of Equiterre. "This is part of a broader recklessness that this government demonstrates in terms of dealing with climate change."

"Canadian governments give kind words to those who reduce pollution gases and cold, hard cash to oil companies for increasing pollution and greenhouse gases," added Greenpeace climate and energy campaigner, Keith Stewart.

The open letter follows the release of several studies that quantify the cost of subsidies to fossil fuel companies. A November 2, 2010 report by the International Institute for Sustainable Development pegged the value of Canadian subsidies at $2.84 billion (CAD) per year.

A November 9, 2010 International Energy Agency (IEA) report estimates that all told G20 Nations provide $312-billion (USD) in annual support to the fossil fuel industry.

"Fossil-fuel subsidies result in an economically inefficient allocation of resources and market distortions, while often failing to meet their intended objectives," said the IEA in its 2010 World Energy Report.