July 2023

The Minister of Environment and Climate Change on Monday announced the release of the Inefficient Fossil Fuel Subsidies Government of Canada Self‑Review Assessment Framework (the Assessment Framework) and the Inefficient Fossil Fuel Subsidies Government of Canada Guidelines (the Guidelines). The Assessment Framework and Guidelines were jointly developed by Environment and Climate Change Canada (ECCC) and the Department of Finance Canada and are intended to support Canada’s 2009 commitment alongside other G20 countries to phase out and rationalize inefficient fossil fuel subsidies over the medium-term while providing targeted support for the poorest. The Assessment Framework also builds on Canada’s commitment under the Statement on International Public Support for the Clean Energy Transition (the Glasgow Statement) in 2021 at COP 26 in Glasgow, to end new direct public support for international unabated fossil fuel, except in limited and clearly defined circumstances that are consistent with the 1.5°C warming limit and the goals of the Paris Agreement. This bulletin briefly summarizes key information and criteria provided in the Assessment Framework and Guidelines. Assessment Framework. ECCC noted that the Assessment Framework is the “first transparently published methodology worldwide” and that it will be used to determine which tax and non-tax measures constitute an “inefficient fossil fuel subsidy”. The Assessment Framework defines “measures” as including: (i) expenditure programs (i.e., grants, contributions, transfers); (ii) intramural research and development; (iii) tariff and duty reliefs; and (iv) tax expenditures that support fossil fuel consumption or that can be claimed by the fossil fuel sector and that represent alternatives to expenditure programs (i.e., tax credits, accelerated capital cost allowances, flow-through shares), and utilizes the World Trade Organization’s definition of “subsidy” as set out in Article 1.1 of the Agreement on Subsidies and Countervailing Measures. The international carbon markets provisions of Article 6 of the Paris Agreement will have an…

Ontario’s Minister of Energy (the Minister) today announced the release of the province’s “Powering Ontario’s Growth” plan (the Plan). The Plan outlines the actions Ontario expects to take to meet increasing demand for electricity supported by strong economic growth and electrification over the next two decades. The Plan notes that Ontario may need to increase its electricity generating capacity from the current 42,000 MW to 88,000 MW by 2050, in addition to replacing 20,000 MW of generation capacity over the same time period. This bulletin briefly highlights Ontario’s planned actions. Current actions. The Plan provides the following actions that Ontario is currently undertaking to meet increasing demand: Nuclear Energy. Ontario in continuing work on the refurbishment of the Darlington and Bruce Nuclear Generating Stations, which together will secure 10,050 MW of generation capacity. In addition, Ontario is supporting the continued operation of the Pickering Nuclear Generations Station and has directed Ontario Power Generation (OPG) to update its feasibility assessment for the refurbishment of Pickering “B” to continue operating beyond 2026. Competitive Procurements for New Build Electricity Generation and Storage. The Minister has directed the Independent Electricity System Operator (IESO) to acquire 4,000 MW of new electricity generation and storage resources through competitive procurements, targeting 2,500 MW of stand-alone energy storage resources and a maximum of 1,500 MW of natural gas generation. Energy Efficiency Program Enhancements. Ontario has increased funding for energy-efficiency programs by $34M, bringing total funding to more than $1B over the current 2021-2024 Conservation and Demand Management framework period. Re-Contracting Ontario’s Small Hydroelectric Stations. The Minister has asked the IESO to design a Small Hydro Program to recontract existing facilities whose current agreements are coming to an end. Transmission Expansion. Ontario has issued an Order-in-Council declaring three transmission line projects in London, Windsor, and Sarnia as provincial priorities, streamlining the regulatory approval…

ECCC Releases Inefficient Fossil Fuel Subsidies Assessment Framework and Guidelines

Ontario Releases Plan to Meet Increasing Demand for Electricity