Some of the largest, most profitable companies in Canada are collectively receiving an estimated $3.3 billion in subsidies every year from Canadian taxpayers, according to a new analysis.
The report, released today by the International Institute for Sustainable Development, a Canadian-based think tank, outlines how billions in federal and provincial tax breaks and corporate incentives benefit companies in the oil and gas sector like Imperial Oil, whose earnings in 2015 were CDN$1.1 billion.
The new analysis comes as Trudeau is in China for the G20 Summit. In 2009 G20 leaders committed to a complete phase out of all fossil fuel subsidies over the medium term and Justin Trudeau, while on the campaign trail, made an election promise to fulfill that commitment.
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Fossil fuel subsidies work against Canada’s commendable progress in putting a price on carbon — they give money and tax breaks to the sources of carbon pollution that we’re trying to scale back,” Amin Asadollahi, North American Lead on Climate Change Mitigation at the International Institute for Sustainable Development, said.