Canada’s fossil fuel industries are the recipients of $2.7 billion US ($3.6 billion CDN) in handouts each year, despite a promise from all G20 nations, including Canada, to eliminate subsidies in 2009.
The report finds G20 countries spend about $452 billion US each year to prop up their oil, gas and coal industries.
The Liberals promised to “fulfill Canada’s G20 commitment to phase out subsidies for the fossil fuel industry,” in their election platform. The party singled out the Canadian Exploration Expenses tax deduction as too generous to industry, saying the tax break should only kick in if companies are completely unsuccessful in their resource exploration.
“The saving will be redirected to investments in new and clean technologies,” the party platform says.
But the Canadian Exploration Expenses tax deduction isn’t the only place where companies can take advantage of a generous subsidy system.
So were else is the money coming from and going to?