Wednesday, May 26, 2010

Canada Aims to Cut Oil Subsidies. Great news for Canada and Mother Nature!

Submitted by Jatinder Kumar

Canada is aiming to become the first country in G20 to cut subsidies on oil prior to the G20 summit in June in Toronto, according to a report. Leaders of G20 had agreed last September to reduce distorting fossil fuel subsidies in the coming times. It was also decided to take some key decisions in Toronto about these plans.

Canada already wants to be the first to take these steps. Senior officials are already working on proposals to reduce tax support for the oil and gas sector. It will help raise millions of dollars and also save the environment. Many already feel that Canadian Government will soon take these decisions.

There is a debate between G20 countries over what constitutes subsidy. Some stress that only consumption subsidies should be reduced while others feel that production subsidies should also be reduced.

Canada also encourages fossil fuel production mainly through the federal and provincial tax systems. Many environmental groups have already approached G20 countries to reduce these subsidies.

Canada is also under a lot of international pressure to decrease these subsidies. Many feel that the Canadian Government needs to take more steps to save the environment.

Experts feel that these steps will not only help Canada project a better image in the eyes of environmentalists but will also help it to make a lot of money.

No comments:

Post a Comment