In 2016, Canada pledged to phase out inefficient fossil fuel subsidies by 2025. The Trudeau government says the move is an important step in the transition to a low-carbon economy. @g20org Twitter photo.
Minister of Finance, Minister of Environment and Climate Change will review inefficient fossil fuel subsidies
While at the G20 Energy Transitions Ministerial Meeting in Patagonia, Argentina, Canada and the host country pledged to participate in peer reviews of inefficient fossil fuel subsidies.
The announcement was made at the sidelines of the the international event, where one of the goals is to move towards more flexible and cleaner energy systems.
Canada’s Minister of Natural Resources, Jim Carr and Argentina’s Energy and Mining Minister, the Honourable Juan José Aranguren, announced that Canada and Argentina will conduct peer reviews to ensure both countries are on track to phase out inefficient fossil fuel subsidies.
“Canada’s partnership with Argentina in this peer review demonstrates our commitment to ambitious climate and energy policies,” said Carr. He added “Transforming how we make and use energy presents huge economic opportunities for Canada and will result in good middle class jobs for Canadians and a cleaner planet for future generations.”
In 2016, Canada committed to phase out inefficient fossil fuel subsidies by 2025, strenthening the 2009 commitment made by G20 countries to phase out and rationalize inefficient fossil fuel subsidies over the medium term.
Argentina’s Juan José Aranguren says the inefficient subsidies “distort energy markets, place a strain on public budgets, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change”.
The phase out of these subsidies is an important step in the shift to a low-carbon economy. Along with the review of the subsidies, Canada is also taking action to combat climate change by pricing carbon pollution, phasing out coal-fired power and regulating methane emissions from the oil and gas sector.
“The environment and the economy go together, and Canada is in the midst of an essential transition to a cleaner, more sustainable future,” said Catherine McKenna, Canada’s Minister of Environment and Climate Change.
“Phasing out inefficient fossil fuel subsidies by 2025 remains a priority for our government, and we are pleased to undertake a peer review with Argentina on our efforts as we work to meet that commitment,” added McKenna.
While focussing on the review, Argentina and Canada say they are providing targeted support for the poorest citizens.
“Argentina reaffirms its commitment to rationalize and phase out, over the medium term, inefficient fossil fuel subsidies that encourage wasteful consumption, recognizing the need to support the poor, and we will endeavour to make further progress in moving forward on this commitment,” said Aranguren.
The Minister of Finance and the Minister of Environment and Climate Change will be conducting the peer review on behalf of Canada.