Clean Energy Canada | Canadian clean fuel standard needed to meet climate target, attract investment in low-carbon economy
December 18, 2020
Environmental groups, clean fuel industry leaders welcome draft regulation, urge swift implementation.
OTTAWA — Implementing a clean fuel standard as soon as possible will be crucial to attract investment in low-carbon fuel options and put Canada on track to meet its emission reduction targets, environmental advocates and industry leaders said today. This afternoon, Canada’s environment and climate change minister published the draft clean fuel standard for a 75-day comment period. The government has said it intends to finalize the regulation next year for implementation in 2022.
The clean fuel standard sets limits on carbon emissions from fossil fuels and establishes a credit market for low-carbon alternatives like biofuels, hydrogen and electric vehicles. The regulation was a key federal commitment under the 2016 Pan-Canadian Framework on Clean Growth and Climate Change, and features prominently in the government’s updated climate plan published last week. The regulation is expected to reduce carbon emissions by more than 20 megatonnes annually in 2030.
In British Columbia, the low carbon fuel requirement has reduced GHG emissions by more than nine megatonnes since 2013. California, Oregon and the European Union have similar requirements in place.
Advanced Biofuels Canada, AddÉnergie Technologies/FLO, Canadian Renewable Energy Association, ChargePoint, Inc., Clean Energy Canada, the David Suzuki Foundation, Electric Mobility Canada, Pembina Institute, Renewable Industries Canada, The Atmospheric Fund and WaterPower Canada will review the proposal published today and submit comments to Environment and Climate Change Canada during its official consultation period.
“Canada can’t meet its 2030 climate targets without a robust clean fuel standard,” said Lisa Gue, senior analyst and researcher with the David Suzuki Foundation. “Clean fuels will power Canada’s green recovery and it is encouraging that the government is moving forward with this important regulation.”
“Similar standards in other jurisdictions have driven innovation across a range of sectors, attracting billions in new capital investment. The clean fuel standard will support economic resilience in Canada’s rural and resource communities and enhance energy security in the global low carbon economy,” said Ian Thomson, president of Advanced Biofuels Canada.
“Recent polling shows Canadians want to be among the most ambitious countries in the world when it comes to shifting to clean energy,” said Mark Zacharias, special advisor at Clean Energy Canada. “The clean fuel standard is a key mechanism in Canada’s energy transition, and we look forward to seeing the regulation finalized next year and implemented in 2022.”
“The clean fuel standard is critical to Canada’s transition to a net zero economy by targeting emission reductions in one of Canada’s largest emitting sectors, transportation,” said Suzanne Goldberg, director of public policy for Canada with ChargePoint Inc. “This regulation also confirms Canada’s commitment to climate action, especially in Canada’s zero emissions vehicle sector.”
“The clean fuel standard is key to reaching Canada’s climate goals, especially when paired with a price on carbon pollution. While carbon pricing motivates a gradual reduction in greenhouse gas emissions across the economy, the clean fuel standard gets to work right away regulating the amount of carbon pollution in our fuel supply and creating an immediate market for zero- and lower-carbon fuel in transportation,” said Bora Plumptre, senior analyst for the Pembina Institute.
“Implementing the clean fuel standard will provide tangible emission reductions and stimulate Canada’s low carbon economy,” said Travis Allan, VP of public affairs and general counsel at FLO. “Strong climate policy will continue to support Canadians as they transition toward electric vehicles, and lower Canada’s transportation emissions.”
“Canada has an abundance of energy resources that can produce clean and renewable electricity, but only 20 per cent of the energy Canadians use is electric,” said Patrick Bateman, interim president of WaterPower Canada. “The clean fuel standard can send very positive signals for electricity to power more and more of those end-uses that currently rely on fossil fuels, while driving investment, job creation and contributing to a healthier environment.”
“The proposed clean fuel standard is an exciting next chapter in Canada’s national environmental policy and will help ensure the liquid transportation fuels Canadians need have a reduced carbon footprint, from production through to end use by consumers,” said Andrea Kent, board director and past president of Renewable Industries Canada. “The clean fuel standard can attract and incent businesses to invest in clean fuel technologies, support increased domestic production and ensure more affordable and cleaner fuels, like biofuels, are available to serve consumers and preserve the planet.”
A statement of:
- Advanced Biofuels Canada
- AddÉnergie Technologies/FLO
- Canadian Renewable Energy Association
- ChargePoint, Inc.
- Clean Energy Canada
- David Suzuki Foundation
- Electric Mobility Canada
- Pembina Institute
- Renewable Industries Canada
- The Atmospheric Fund
- WaterPower Canada