The analysis of Canada’s support for fossil fuels, measured as a percentage of GDP from 2024 to 2028, indicates a steady decrease beginning at 0.14% in 2024, and stabilizing at 0.13% annually thereafter. This marks a slight drop from 2023’s actual numbers. With a year-on-year variation of −7.14% from 2024 to 2025, the support stabilizes, indicating efforts to maintain consistent subsidies over the latter years. Observing the compound annual growth rate (CAGR) over these five years, there is an average annual reduction, reflecting a gradual transition from fiscal dependence on fossil fuels.
Future trends to watch for include the potential acceleration of renewable energy investments and policy shifts shifting away from fossil fuels, which could lead to further reductions in government support provided to this sector. Continuation of international climate agreements and domestic environmental policies might significantly influence these projections.
