Canada to Adopt National Low Carbon Fuel Standard

Canada, Opinions, Policy

November 28, 2016

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by Jim Lane (Biofuels Digest) In Canada, Minister of Environment and Climate Change Catherine McKenna announced that Canada will adopt a national clean fuels standard, as an important step for climate action and the growth of Canada’s cleantech economy and green jobs.

This federal leadership builds on the early actions of British Columbia, Oregon and California, and will greatly improve availability of low carbon fuel choices and competition at the pump. A clean fuel standard would be flexible and promote the use of clean technology, lower carbon fuels, and promote alternatives such as electricity, biogas and hydrogen.

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British Columbia has already demonstrated that leadership in clean and renewable fuels can go hand in hand with economic growth.

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A clean fuels standard will achieve carbon reductions well beyond what can be achieved from a price on carbon alone. Unlike a price on carbon, which relies on making fuels more expensive to discourage their use, a clean fuel standard will stimulate direct investments in a variety of lower carbon fuel options. A clean fuels standard is particularly effective because all compliance costs are directed back into lower carbon solutions.

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A national clean fuels standard will require fuel suppliers to progressively reduce the carbon pollution in their fuels, with annual reduction requirements within a specified overall timeframe. Environment and Climate Change Canada will consult with stakeholders to establish the reduction levels and timeframes.

Next steps

Environment and Climate Change Canada will publish a discussion paper in February 2017 to help guide consultations consisting of meetings, workshops, and technical working groups that will help inform the development of Canada’s clean fuel standard.

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By contrast to renewable fuel mandates, this approach would not prescribe the particular low-carbon fuel or technology that must be used; instead, it would focus on emission reductions.

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Currently, the average renewable fuel blending in Canada’s fuels is over seven percent ethanol in gasoline, which exceeds the five percent level set out in the Renewable Fuels Regulations and about two percent renewable content in diesel fuel, which meets the regulatory level. READ MORE and MORE (Biomass Magazine) and MORE (Reuters) and MORE (CBC)

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