Council, Ethanol Partners Respond to Canada’s Clean Fuel Standards Regulations Proposal

Canada is working to finalize its clean fuel standards (CFS), with goals of reducing pollution and carbon intensity of its fuels while working toward net-zero emissions by 2050.

The U.S. Grains Council and its ethanol partners — Growth Energy and the Renewable Fuels Association (RFA) — recently voiced support for the proposal in a joint statement.

“The proposed regulation takes a market-based approach to driving carbon reductions in the Canadian fuels market, providing an attractive model for other countries to follow,” the groups said.

“Canada should be applauded for showing global leadership on the implementation of a clean fuel standard, and it is encouraging to see both the United States and Canada taking steps to slash greenhouse gas (GHG) emissions from transportation.

"Renewable fuels have already played a crucial role in jump-starting decarbonization efforts in both countries, and policy initiatives like Canada’s clean fuel standard will further accelerate those efforts.”

By requiring liquid fuel suppliers to gradually reduce the carbon intensity of the fuels they produce and sell in Canada, the country hopes to significantly reduce pollution and carbon intensity of its liquid fuels by 2030.

The proposal is part of a larger goal for Canada to meet GHG emission reduction targets set for its Nationally Determined Contributions under the Paris Agreement.

“This regulation, coupled with the recent announcement in the United Kingdom that is moving from E5 to E10 by September, shows that more countries are committed to expanding the role of biofuels in meeting their Paris Agreement commitments and their long-term environmental goals,” the groups noted.

In addition, the organizations voiced their support of the proposal to Environment and Climate Change Canada, emphasizing that it allows renewable fuel producers to account for carbon capture and sequestration in their carbon intensity scores, regardless of whether the fuel is produced in Canada or the United States.

This is critical as the U.S. industry continues to make investments in this technology.

Finally, the joint statement addressed making the proposed new fuel lifecycle analysis model public to allow for comparison of input requirements and demonstration of reciprocity with United States and other global models.

On this point, the group said, “releasing the details of the proposed lifecycle analysis approach now — even if not complete — would be beneficial to the public stakeholder process.”

Consultations are ongoing, with final regulations set to be published in late 2021, and the regulatory requirement to come into force in December 2022.

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