Here's something to think about while filling up at the gas pump...

IMF Pegs Canada's Fossil Fuel Subsidies at $34 Billion

In such giveaways we're a world leader, a fact rarely noted when federal budgets are debated.

By Mitchell Anderson, 15 May 2014, TheTyee.ca

   

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While Canada slashes budgets for research, education and public broadcasting, there is one part of our economy that enjoys remarkable support from the Canadian taxpayer: the energy sector.

The International Monetary Fund estimates that energy subsidies in Canada top an incredible $34 billion each year in direct support to producers and uncollected tax on externalized costs.

These figures are found in the appendix of amajor report released last year estimating global energy subsidies at almost $2 trillion. The report estimated that eliminating the subsidies would reduce global carbon emissions by 13 per cent. The stunning statistics specific to this country remainalmost completely unreported in Canadian media.

Contacted by The Tyee, researchers from the IMF helpfully provided a detailed breakdown of Canadian subsidies provided to petroleum, natural gas and coal consumption. The lion's share of the $34 billion are uncollected taxes on the externalized costs of burning transportation fuels like gasoline and diesel -- about $19.4 billion in 2011. These externalized costs include impacts like traffic accidents, carbon emissions, air pollution and road congestion.

The report also referenced figures sourced from the OECD showing an additional $840 million in producer support to oil companies through a constellation of provincial and federal incentives to encourage fossil fuel extraction. This brought total petroleum subsidies in Canada in 2011 to $20.23 billion -- more than 20 times the annual budget of Environment Canada.

In comparison to other countries, Canada provides more subsidies to petroleum as a proportion of government revenue than any developed nation on Earth besides the United States and Luxembourg.

Natural gas consumption also enjoys billions in subsidies in Canada. The IMF estimates that un-priced carbon emissions from burning natural gas added up to $7.3 billion per year. There's another $440 million in producer support and $360 million in other un-taxed externalities, all of which tops $8.1 billion. This tax giveaway on natural gas alone is 44 per cent more than Canada provides in international aid every year.*

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To read the entire article, go to The Tyee

* You remember the natural gas industry, don't you? It's the one that the Ontario Energy Board gave a 40% increase to in April of this year, because it cried 'poor mouth.' See: Enbridge 40% Natural Gas Hike Okd.