Canada releases Clean Fuel Standard framework

By Tim Albrecht | December 14, 2017

Environment and Climate Change Canada released the preliminary Clean Fuel Standard regulatory framework Dec. 13, according to a press release from non-profit Renewable Industries Canada.

The goal of the proposed framework is to achieve 30 million metric tons (33.1 million tons) in GHG emissions annually by 2030, which contributes to the country’s effort to achieve an overall GHG mitigation target of 30 percent reduction below 2005 levels.

The clean fuel standard will establish lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels that are used in transportation, industry and buildings. This performance-based approach will incent innovation, development and use of a broad range of low carbon fuels, energy sources and technologies.

“Our association supports the government of Canada’s objectives and is encouraged that, in the short term, the CGS’s intensity based targets will be backstopped by existing biofuel mandates. This combination of policy levers will help ensure that heightened demand for biofuels is met by increased domestic supply,” said RICanada Chairman Jim Grey.

Scott Lewis, vice chair of RICanada, and executive vice president of biofuel producer BIOX Corp., said, “The domestic biofuel industry has grown to the point where it is now generating gross economic benefits in excess of $3.5 billion to the Canadian economy each year. This announcement will also bring to Canada a credit trading market for biofuels that is essential in our ability to continue to bring low carbon fuels to consumers at competitive prices, while allowing for some flexibility in compliance.”

The framework builds on existing policy that mandates the blending of 5 percent ethanol and 2 percent biodiesel into Canada’s transportation fuels. The 2010 mandates have reduced GHG emissions by more than 4 million tons per year, which is the equivalent of removing 1 million cars from Canada’s roads each year.

Greenfield Global, a producer of corn-based bulk industrial alcohol, packaged alcohol and fuel ethanol, President and CEO Howard Field welcomed the next stage of the process, saying, “By harnessing the benefits of biofuels within a clean fuel standard, Canada can make even stronger inroads in tackling climate change. We look forward to continued work with the Government on this ambitious policy.”              

A copy of the Clean Fuel Standard regulatory framework is available here.