Canada Introduces New Oil and Gas Subsidies and Carbon Capture Tax Credits

The Canadian government has updated its Spring Economic Update to include new subsidies for the oil and gas sector. Key changes include a carbon capture tax credit that now allows for enhanced oil recovery, potentially increasing fossil fuel production while claiming to store more carbon. Beyond oil subsidies, the update introduces tax credits for low-carbon LNG facilities and hints at a new national nuclear energy strategy. These moves come as Canada faces challenges meeting its Paris Agreement targets and lags behind G7 peers in wind and solar deployment.