In 2023, tax expenditure on coal in Canada stood at 10.96 million USD. As per forecasts, by 2024, this figure will decrease to 9.2 million USD, indicating a concern for a year-on-year reduction that continues through 2028. The annual reductions amount to approximately 20.9% in 2025, 24.7% in 2026, 32.5% in 2027, and 48.3% in 2028, displaying a swift downward trend. Over the five-year period ending 2028, the compound annual growth rate (CAGR) reflects a significant average annual decline.
In terms of future trends to watch for:
- Monitoring the impact of Canada's ongoing shift towards sustainable energy resources and its implications on coal tax expenditure.
- Evaluating how policy shifts towards reducing carbon emissions might further accelerate the decline in coal tax expenditure.
- Assessing market response in terms of energy prices and coal demand, influenced by both regional policies and global energy trends.
