Review of fossil fuel subsidies stalls as Argentina ceases communication with Canada – thealbertan.com

Report on the Stalled Peer Review of Fossil Fuel Subsidies Between Canada and Argentina

Background and Context

In 2018, Canada and Argentina initiated a peer review of fossil fuel subsidies as part of a G20 commitment to eliminate all “inefficient” fossil fuel sector subsidies. This initiative aligns with the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action), aiming to promote sustainable energy use and combat climate change.

The review was originally scheduled to be completed within two years but has experienced significant delays and is currently stalled.

Current Status and Challenges

1. Argentina ceased communication and participation in the peer review process following its 2023 election and change in government, with President Javier Milei, known for his skepticism towards climate change, assuming office.
2. This shift in Argentina’s domestic policies on environment and climate change has directly impacted the progress of the peer review.
3. Argentina’s negotiators withdrew from the 2024 UN climate talks, and there have been reports of potential withdrawal from the Paris Agreement, which would undermine global efforts to meet SDG 13.
4. Canada has reported no additional progress since Argentina’s election despite some initial engagement on planning the peer review.

Comparative Analysis of Peer Reviews

• Other G20 peer reviews, such as those between the United States and China, Germany and Mexico, and Italy and Indonesia, were completed within 12 to 24 months.
• As of 2021, 11 G20 peer reviews had been successfully completed, contributing to increased transparency and better subsidy management in line with SDG 16 (Peace, Justice and Strong Institutions).
• These reviews help define fossil fuel subsidies, assess their effectiveness, and support the transition towards sustainable energy systems.

Impact and Effectiveness

According to Jonas Kuehl, policy adviser at the International Institute for Sustainable Development, the peer review process has had limited impact on phasing out subsidies but has improved transparency and inventory structuring. This transparency is crucial for achieving SDG 12 and SDG 13 by enabling informed policy decisions.

Canada’s Approach to Fossil Fuel Subsidies

• In 2023, Canada committed to ending “inefficient” fossil fuel subsidies, defined as those supporting fossil fuel consumption and disproportionately benefiting the fossil fuel sector without contributing to sustainable development.
• Exceptions include subsidies for clean energy and technology, essential energy services in remote communities, emergency response measures, and initiatives encouraging Indigenous economic participation, supporting SDG 7 and SDG 10 (Reduced Inequalities).

Environmental Concerns and Financial Support

Environmental organizations highlight that Canada continues to provide substantial financial support to the oil and gas sector, estimated at nearly $30 billion in 2024. This includes:

• $1 billion allocated through the Canada Growth Fund for Strathcona Energy’s carbon capture projects.
• $10 million directed towards clean fuel projects, including fossil fuel-based hydrogen.

Such expenditures raise concerns regarding the alignment with SDG 13 and the global commitment to reduce greenhouse gas emissions.

Conclusion

The stalled peer review between Canada and Argentina represents a significant setback in the global effort to eliminate inefficient fossil fuel subsidies and advance the Sustainable Development Goals related to energy and climate action. Renewed commitment and international cooperation are essential to resume progress and ensure that fossil fuel subsidies do not undermine global sustainability objectives.

Report by Nick Murray, The Canadian Press, published June 24, 2025.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses fossil fuel subsidies and the transition to clean energy technologies.
2. SDG 12: Responsible Consumption and Production
   • Focus on eliminating inefficient fossil fuel subsidies aligns with sustainable consumption and production patterns.
3. SDG 13: Climate Action
   • References to climate change policies, the Paris climate pact, and environmental commitments directly relate to climate action.
4. SDG 17: Partnerships for the Goals
   • The peer review process between countries (Canada and Argentina, and other G20 members) exemplifies international cooperation and partnerships.

2. Specific Targets Under Those SDGs Identified

1. SDG 7: Affordable and Clean Energy
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
   • Target 7.b: Expand infrastructure and upgrade technology for supplying modern and sustainable energy services.
2. SDG 12: Responsible Consumption and Production
   • Target 12.c: Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption by removing market distortions.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Target 13.a: Implement the commitment undertaken by developed-country parties to the UNFCCC to mobilize financial resources to assist developing countries in mitigation and adaptation.
4. SDG 17: Partnerships for the Goals
   • Target 17.16: Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships.
   • Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicator for SDG 12.c
   • Amount of fossil fuel subsidies (financial value) provided by governments, as referenced by the $30 billion spent by Canada in 2024.
   • Progress in phasing out inefficient fossil fuel subsidies, as measured by peer review outcomes and transparency in subsidy inventories.
2. Indicator for SDG 13.2
   • Participation and commitment to international climate agreements such as the Paris climate pact (e.g., Argentina’s potential withdrawal indicating regression).
   • National policy shifts towards or away from climate change measures, as seen in Argentina’s change in government and policy stance.
3. Indicator for SDG 17.16 and 17.17
   • Number and effectiveness of international peer reviews conducted (e.g., G20 peer reviews between countries).
   • Level of communication and cooperation between countries in environmental policy implementation.
4. Indicator for SDG 7.a and 7.b
   • Funding allocated to clean energy projects and technologies (e.g., $1 billion for carbon capture, $10 million for clean fuel projects).
   • Extent of support for clean energy infrastructure and technology development.

4. Table of SDGs, Targets, and Indicators

Source: thealbertan.com