The forecasted tax expenditure on fossil fuels in Canada is set to decrease steadily from 2024 to 2028, highlighting a declining trend in government support in this sector. The values decrease from 1.52 billion USD in 2024 to 1.11 billion USD in 2028, indicating a consistent year-on-year reduction. Using a constant 2020 dollar value framework, expenditures show a compound annual growth rate (CAGR) decline of approximately 7% over these five years.

Future trends to watch for:

Potential shifts in policy towards renewable energy that could further reduce fossil fuel subsidies.
Global oil market volatility may impact the fiscal dynamics influencing these expenditures.
Monitoring technological advancements and climate policy changes that may affect future tax initiatives.