Meanwhile Back In Canada , The Auditor General Has Some Bad News For Our Government

Overall message

7.13Overall, we found that the Department of Finance Canada and Environment and Climate Change Canada did not define what the 2009 G20 commitment to phase out and rationalize inefficient fossil fuel subsidies means in the context of Canada’s national circumstances.

7.14We found that since 2009, six subsidies to the fossil fuel sector were reformed by legislation. Other tax measures for this sector were not reformed. We also found that the Department of Finance Canada did not consider all tax measures to determine whether they were inefficient fossil fuel subsidies under the commitment. The Department also did not develop an implementation plan with timelines to support the phase-out and rationalization by 2025 of remaining tax measures that are inefficient fossil fuel subsidies.

7.15In addition, the Department of Finance Canada refused to provide all the analyses that we requested for tax measures that focus on the fossil fuel sector. As a result, we could not provide assurance that the Department analyzed the social, economic, and environmental aspects of all these tax measures to support informed decision making relating to Canada’s 2009 G20 commitment.

7.16We also found that while Environment and Climate Change Canada developed a plan to guide the initial stages of its work, it did not yet know the extent of federal non-tax measures that could be inefficient fossil fuel subsidies.

7.17These findings matter because without a clear understanding of the fossil fuel subsidies covered by the G20 commitment and without an implementation plan with timelines, the departments cannot ensure that they are providing the support needed for Canada to meet the commitment by 2025. Meeting this commitment will have a positive impact on the health of Canadians and the environment by reducing greenhouse gas emissions and wasteful consumption of fossil fuels, and by encouraging investments in clean energy.

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