Fossil fuel subsidies, plastics pollution, circular economy are key topics at the G7 Energy and Environment meetings

Following the G7  meetings at Charlevoix Quebec in June 2018, further meetings in Halifax from September 19 to 21 brought together the G7 ministers with responsibilities for Environment, Oceans and Energy.  The International Institute (IISD) published a comprehensive summary of the meetings  on September 25, with links to the official Chair’s Summary statements.  The National Observer was one of only a handful of media outlets which reported on these meetings.  Their report of September 25,  “Unscrambling the language of Canada’s G7 Climate Diplomacy”   is a plain language overview of what happened.  Environment and Climate Change Canada, as host of the meetings, also published press releases highlighting Canada’s commitments:  the press release of  September 19, titled “G7 environment meetings in Halifax focus on climate action, and the $26 trillion opportunity of clean growth and tackling air pollution”  announced a Canadian pledge of  $2 million for the National Adaptation Plan Global Network, to further climate change adaptation in  developing countries and $2 million for a new initiative to empower women entrepreneurs working on climate solutions in the developing world.  More broadly, Environment ministers discussed the  implementation guidelines for the Paris Agreement on climate change – the Paris Rulebook –  in an attempt to move that forward before the scheduled deadline of the UNFCCC  Conference of the Parties (COP 24) in Katowice, Poland, in December 2018.

On September 20, the Canadian government’s press release states : the Government of Canada committed to diverting at least 75 per cent of the plastic waste from government operations by 2030. It will achieve this by eliminating the use of unnecessary single-use plastics, increasing recycling rates, and leveraging its purchasing decisions to focus on sustainable plastic products. The Government of Canada also announced a $65 million investment through the World Bank for an international fund to address plastic waste in developing countries. ”

A contentious issue was fossil fuel subsidies. An earlier report by the National Observer , “G7 promise to kill fossil fuel subsidies hangs over Halifax meetings” (September 20)  , highlights the topic, which has been a perennial but never-resolved issue since the G20 first agreed to phase them out in 2009.  In 2016, the G7 first set a deadline for ending fossil fuel subsidies by 2025  ; Energy ministers at the 2018 Halifax meetings reaffirmed that commitment.

public-cash-oil-gas-en-1Despite the G7 commitment, “Canada is still the largest provider of subsidies to oil and gas production in the G7 per unit of GDP”, according to the newest report by the International Institute for Sustainable Development (IISD), which has published extensively on the issue.   Fossil Fuel Subsidies in Canada: ‘Public Cash for Oil and Gas: Mapping federal fiscal support for fossil fuels , a September 2018  report was published by  the International Institute for Sustainable Development (IISD), in collaboration with Oil Change International, Equiterre, Environmental Defence, and the Climate Action Network.  It also states that overall fossil fuel subsidies declined in Canada in 2016-2018 over 2015, but it  attributes this to the impact of oil price fluctuations on the value of deductions, and how companies use tax deductions,  rather than any substantive policy reform.  In a concluding discussion , the report states that the oil and gas sector will inevitably follow the economic path of the coal industry, and thus, “it is imperative that those in these declining energy sectors are part of the planning” for a Just Transition. Removing subsidies for the sector,  could create enough “fiscal space” to fund a just transition for workers and communities.

Green Budget cover 2019The Green Budget Coalition also weighed in recently on fossil fuel subsidies in its  Recommendations for Budget 2019 ,  which includes a discussion of the history of fossil fuel subsidies in Canada, a rationale for their phase-out, and calls for the government:  to provide a transparent accounting of what subsidies are in place to the Parliamentary Budget Office; not to introduce new subsidies; and to legislate a timeline for the phase-out of remaining deductions for fossil fuel exploration and production, and for direct subsidies.

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