Fossil fuel subsidies an ‘anti-carbon tax’: report

There is mixed reaction in Saskatchewan to a commitment made at the G7 summit to phasing out carbon emissions. File / Global News

Environmental groups say Canada’s attempts to set a price on carbon are being undercut by subsidies to the fossil-fuel industry.

They say tax exemptions, investment credits and royalty breaks add up to the equivalent of $19 per tonne of carbon dioxide.

READ MORE: Canadians suspicious Liberal carbon price plan will turn into a cash grab: Ipsos poll 

That’s almost exactly the same as the price on carbon Alberta plans to implement next year and is double the proposed federal price.

READ MORE: Alberta Greenhouse Growers brace for carbon tax, push for BC-style rebate 

Dale Marshall of Environmental Defence says governments should be working to gradually scale down the industry, not encourage its growth.

Energy economist Mark Jaccard says most of those subsidies are part of tax policy designed to aid the overall mining industry.

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He says it makes more sense to keep raising the cost of carbon, either through a tax or regulations.

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