Mr. Speaker, Environment and Climate Change Canada is continuing its work with a number of federal departments and agencies to develop a comprehensive framework and guidance to assess whether a non-tax measure may constitute an “inefficient fossil fuel subsidy”. The department is finalizing its criteria for determining “inefficiency” and is conducting ongoing consultations as part of the process.
ECCC recognizes that the issues of economic, social and environmental sustainability are important considerations, and the framework and guidance will include those considerations. The department will assess how to strike a balance between the issues of economic, social and environmental sustainability. ECCC and the Department of Finance are working together to finalize the framework and guidance to identify and assess relevant measures in order to fulfill the G20 commitment.
Canada recently committed to accelerate the timing of its G20 commitment to phase out or rationalize inefficient fossil fuel subsidies from 2025 to 2023. A report listing Canada’s inefficient fossil fuel subsidies is being developed and will be submitted to a panel of experts as part of Canada’s G20 peer review process with Argentina.