Ottawa is restricting the conditions under which it will allow subsidies to the fossil fuel industry.
The federal government has released guidelines that will limit when public funds are used to support oil and development.
Subsidies will be allowed if they support clean energy as well as projects that reduce their greenhouse gas emissions or have a credible plan to achieve net zero by 2030.
Subsidies aiding Indigenous involvement in the industry will continue, as will those that support service to a remote community or form part of an emergency response.
The federal Liberals will also permit subsidies that align with Article 6 of the Paris Agreement, which allows countries to claim carbon credits for providing fuels capable of lowering the carbon footprint of another country.
Federal officials say the framework will influence 129 non-tax measures, although they couldn’t say how it might affect the industry financially.
This report by The Canadian Press was first published July 24, 2023.