Greening the Canadian Transportation Sector

Business News/Analysis, Canada, Opinions, Policy, Sustainability

June 27, 2018

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by Jim Grey (Renewable Industries Canada/Ethanol Producer Magazine) Canada is a great example of how biofuels can lead the way for greenhouse gas (GHG) reductions, and of the importance of bringing this message to policymakers.

As business people, ethanol producers think first, quite naturally, of the bottom line. We think of the need to run our operations efficiently, to source and manage timely inputs, to ensure our transformation processes are optimized, our distribution systems effective, our sales, marketing and accounts receivable efforts well-managed, etc.

When we engage with our buyers, we market our product based on its price, quality and octane level. While these critical aspects must remain central to our focus, we also engage regularly with two other audiences whose interests differ considerably: policymakers and the general public. As Canada heads toward key decision points that will transform transportation sector fuels, educating and engaging policymakers has never been more important.

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Overall, Canada is poised to join world leaders in aggressive climate policies and our goal is that biofuels are recognized as a key pathway for GHG reductions.

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Of the CFS’s 30 megatonne target, ethanol alone can deliver anywhere from 8.5 megatonnes based on conservative calculations, to 15 megatonnes of GHG reductions should the policy optimize ethanol’s potential. Biodiesel and renewable diesel combined could conservatively add another 9.7 megatonnes of reductions, assuming a total blend level of about 13 percent. This number could be considerably higher in a bullish scenario.

So, in Canada, biofuels in and of themselves could contribute from 18 to 26 of the 30 megatonnes of reductions sought by the CFS. This represents anywhere from 60 to 87 percent of the total policy’s target. This would be a win-win for Canada’s environment, and economy. Independent economic modeling has shown that under a well-designed CFS, the Canadian biofuels sector could have an increased economic impact of up to $21 billion (Canadian) per year, while creating over 12,500 full-time jobs.

As policymakers around the globe work toward meeting commitments under the Paris Agreement, it is worth noting that focus on the transportation sector—and biofuels in particular—can pay strong dividends. READ MORE

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