Canada will gradually phase out "inefficient fossil fuel" subsidies and further commit to clean energy sources, the Ministry of Environment and Climate Change said on Monday
WASHINGTON (Pakistan Point News / Sputnik - 24th July, 2023) Canada will gradually phase out "inefficient fossil fuel" subsidies and further commit to clean energy sources, the Ministry of Environment and Climate Change said on Monday.
"Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, released the Inefficient Fossil Fuel Subsidies Government of Canada Self�Review Assessment Framework and the Inefficient Fossil Fuel Subsidies Government of Canada Guidelines ... Eliminating inefficient fossil fuel subsidies and redoubling our focus on clean energy is a key step in building Canada's net-zero economy by 2050 and supporting good-paying jobs for Canadians for generations to come," the ministry's statement said.
Jointly developed by Environment Canada and the Department of Finance, the Assessment Framework and Guidelines aim at further supporting the reduction of the country's carbon footprint, notably by decarbonizing the oil and gas sectors, the statement said, adding that changes in the industry will help in the fight against climate change.
Accordingly, the decision to phase out the subsidies falls under Canada's commitments at the 2021 United Nations Climate Change Conference (COP26) in Glasgow, where it pledged to end direct public support for the international fossil fuel sector.
This is also further in line with the Paris Agreement and its goal to limit global warming by 1.5�C (34.7�F), the statement continued.
The Ministry listed the following six criteria to be respected to access subsidies: (1) Enable significant net greenhouse gas emissions reductions in Canada or internationally in alignment with Article 6 of the Paris Agreement. (2) Support clean energy, clean technology, or renewable energy. (3) Provide essential energy service to a remote community. (4) Provide short-term support for emergency response. (5) Support Indigenous economic participation in fossil fuel activities. (6) Support abated production processes, such as carbon capture, utilization, and storage (CCUS), or projects with a credible plan to achieve net-zero emissions by 2030.
Environment Canada said that failing to meet one or more of the six established criteria under the Assessment Framework will lead to subsidies being considered inefficient.�
