Government announces Clean Fuel Standard

New regulations seek to reduce carbon footprint

The Government of Canada has announced rules for its Clean Fuel Standard. The new regulation seeks to reduce greenhouse gas emissions by reducing the amount of carbon in fuel products such as gasoline, diesel and home heating oil. Under the plan, Canada is expected to reduce its carbon footprint by 21 mega-tonnes by the end of this decade. The cost of a litre of gasoline will rise by as much as 0.11 cents to meet the target.

The Clean Fuel Standard regulations will require producers and distributors of fossil fuels to reduce their carbon content by 2.6% by 2022 and by 13% by 2030. According to the Government, fuel companies could achieve this level by reducing carbon emitted during the production process as well as making the fuel itself more efficient. Credits could also be earned and applied against emissions.

The Canadian Government states that industry would find it easier to meet the goals of the standard under this plan because producers would have more flexibility in how to reduce emissions. The rules would also enable fuel distributors to earn credits by helping drivers switch to electric vehicles through the construction of new charging stations. Energy efficiency, cogeneration, electrification and methane reduction all qualify for credits.

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