Canada on Monday released a framework for eliminating inefficient fossil fuel subsidies, making it the first G20 country to deliver on a 2009 commitment to rationalise and phase out government support for the sector.
Climate policy analysts said the framework was an important step forward, but fell short in continuing to allow government support for oil and gas projects that plan to reduce emissions through technologies such as carbon capture and storage .
"This ensures that the only federal support for oil and gas goes to projects that decarbonize the sector and result in significant greenhouse gas emissions reductions," federal Environment Minister Steven Guilbeault told a press conference. The NDP critic for Climate Change and Environment, Laurel Collins, said the new rules did not go far enough.
Canada, the world's fourth-largest oil producer, expects the technology to play a major role in decarbonizing the industry and last year announced a CCS investment tax credit.
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