The Liberal government of Canada is expected to fulfill its long-standing promise to end federal subsidies for fossil-fuel production next week. This commitment was initially made by Canada 14 years ago and is finally being addressed by the government.
Environment Minister Steven Guilbeault has stated that the policy directive will be similar to the one implemented last year, which ended most of Canada’s public financing for international fossil-fuel projects. Under the new directive, future fossil-fuel projects will only be eligible for federal funding if they align with Canada’s climate commitments.
However, subsidies for clean technologies that contribute to reducing or eliminating emissions from fossil-fuel production, such as carbon capture and storage systems, will not be affected.
This move aligns with the commitment made by G20 nations in 2009 to gradually phase out government funding for projects involving the extraction of oil, gas, and coal. While the initial deadline set by the Liberals was 2025, it has now been moved up to the end of this year.
The decision to end domestic subsidies for fossil-fuel production reflects Canada’s ongoing efforts to address climate change and transition to a cleaner and more sustainable energy future. By redirecting financial support towards clean technologies, the government aims to align its economic policies with its environmental commitments.