Promise details

We will fulfill our G20 commitment and phase out subsidies for the fossil fuel industry over the medium-term.

Trudeau polimetre - 2015
Promise broken

Real Change: A New Plan For a Strong Middle Class (page 40)


The Government of Canada did not phase out all subsidies for the fossil fuel industry. Furthermore, with the purchass of the Trans-Mountain Pipeline, the recent projections are showing they will not meet their G20 commitment.


March 19, 2019 - "In 2009, Canada and other Group of Twenty (G20) countries committed to phase out and rationalize inefficient fossil fuel subsidies, recognizing that these subsidies can encourage wasteful consumption, impede investment in clean energy sources and undermine efforts to fight the threat of climate change. For its part, Canada went one step further and committed to rationalize inefficient fossil fuel subsidies by 2025. To date, Canada’s efforts to reform fossil fuel subsidies have resulted in the phase-out or rationalization of eight tax expenditures. The phase-out or rationalization of these eight tax expenditures have been introduced gradually to enable the industry to adapt. Actions this Government has taken to move forward in meeting our commitment include: • Rationalizing the tax treatment of expenses for successful oil and gas exploratory drilling (announced in Budget 2017 and to be completed by 2021). • Phasing out a tax preference that allows small oil and gas companies to reclassify certain development expenses as more favorably treated exploration expenses (announced in Budget 2017 and to be completed in 2020). Announcing that the accelerated capital cost allowance for liquefied natural gas facilities would expire as scheduled in 2025 (announced in Budget 2016)." - Investing in the Middle Class, Budget 2019-2020, p.90-92 - Government of Canada

December 18, 2018 - « Ils ont indiqué que les fonds eront à la disposition de toutes les sociétés pétrolières et gazifières du Canada » - Ottawa verse 1,6 milliard de dollars pour redynamiser le secteur pétrolier et gazier - Radio-Canada

May 19, 2018 - Ottawa achète l'oléoduc Trans Mountain: «une erreur historique» - La Presse

May 16, 2017 - "The department seems to have no plan with regard to this commitment, which is a problem for a government that has made big commitments to climate change," Christopherson said. "The Liberals' refusal to provide information to the auditor general strikes at the very heart of accountability and makes a farce out of the Liberals' promise of openness and transparency." - Auditor general questions Canada's plan to phase out fossil fuel subsidies - CBC

March 22, 2017 - "Canada has made a commitment with its partners in the G20 and Asia-Pacific Economic Cooperation to phase out inefficient fossil fuel subsidies. Such subsidies can encourage wasteful consumption, impede investment in clean energy sources, and undermine efforts to combat the threat of climate change." - Building a strong middle class, Budget 2017-2018, p.208 - Government of Canada

March 24, 2016 - "Now is not the time to phase out fossil fuel subsidies, Natural Resources Minister Jim Carr said Wednesday, despite what a Liberal cabinet colleague is billing as the greenest federal budget ever.  […]But a campaign promise to "phase out subsidies to the fossil fuel industry over the medium-term" did not make the cut in the first Liberal budget. In fact, the government locked in one recent liquefied natural gas subsidy until 2025. Carr emerged from a caucus meeting Wednesday to say now is "not the moment" to start ramping back government subsidies for an oil and gas sector hammered by a global glut and price decline." - Oil patch woes give federal Liberals cold feet on cutting fossil fuel subsidies - National Observer

March 22, 2016 - "Consistent with Canada’s G20 commitment to eliminate fossil fuel subsidies over the medium term, the Government intends to maintain this tax preference as currently legislated and allow it to expire as scheduled." - Growing The Middle Class, Budget 2016-2017, p.221 - Government of Canada


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