A new report suggests the economic impact of the pandemic led to a massive increase in federal aid to Canada’s oil patch.

But the annual inventory of fossil fuel subsidies published by the International Institute for Sustainable Development also highlights that almost all of the direct aid was paid out in two programs to protect jobs and cut greenhouse gas emissions.

It raises further questions about how to define fossil fuel subsidies, an issue Canada has not solved despite promising to eliminate “inefficient” ones for more than a decade now.

“The problematic aspect is how do we make sure they’re not supporting for future fossil fuel production,” said Vanessa Corkal, a policy analyst at the IISD and author of the report.

Her report notes that it makes no sense for Canada to both provide direct funding to help fossil fuel producers and charge a price on the pollution fossil fuels create, likening it to “trying to bail water out of a leaky boat.”

Source: Pandemic increased direct aid to fossil fuel producers, new study shows – JWN Energy

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