Environment committee  Thanks very much for the opportunity to chat about this important issue. I will draw today on a recent report from my colleagues at the Canadian Climate Institute, Rachel Samson, Don Drummond and Peter Phillips. That paper takes an economic perspective on fossil fuel subsidies.

Environment committee  Member, just as a clarification, please, are we talking about the target of achieving emissions reductions or the target of phasing out fossil fuel subsidies?

Environment committee  I think my remarks suggest that in fact phasing out fuel subsidies, in lots of cases, can support economic growth, and that prudent management of public funds is a key part of long-term prosperity. In the face of global transitions and big shifts in international markets, 90% of

Environment committee  And we'll get better return on public dollars in other areas.

Environment committee  I think it depends on the rate. If they are preferential loans that give the proponent rates that are better than they could receive in the market—

Environment committee  In some cases, yes, they are.

Environment committee  I don't have an numerical answer to that question at hand.

Environment committee  It would be a different—

Environment committee  I think both can be considered subsidies. It's a question of how big the subsidy is.

Environment committee  If the rate is better than they could receive from market value from the capital markets, yes.

Environment committee  It's a fraction of the piece, rather than the whole.

Environment committee  I think it's probably smaller than that. Yes.

Environment committee  That comes from commitments to achieve net-zero under the national climate process.

Environment committee  Not all of those countries have yet implemented policies. You are correct. That being said, the risk of them acting on their commitments should be taken seriously.

Environment committee  The risk of them acting should also be taken seriously. The risk of them moving, committing and following through on those commitments should be taken seriously.