The idea behind the carbon tax is that consumers of carbon products will find their own most efficient ways of cutting carbon consumption. In theory, it seems simple. In practice, however, it’s a much more complex and nuanced endeavor. Politicians disagree. Economists disagree. And now, thanks in part to a new report from the Canadian Chamber of Commerce, it seems business doesn’t agree either.

The Chamber’s report entitled, A Competitive Transition, supports carbon pricing but doesn’t tell the whole story. Let’s be clear; carbon pricing can lead to lower greenhouse gas emissions (GHGs). But, it is not the only cost-effective policy available – a fact the Chamber ignores under the guise of reducing “regulatory duplication” and “supporting small business find their own path.” Granted, I did not see any small businesses sponsor this report.

Carbon pricing works best when paired with complementary policies that measure emissions and mandate, at least in the short term, low carbon fuels. It’s been proven in successful jurisdictions like California. It’s also an inconvenient fact for some and can manipulate conversations advocating for carbon pricing into thinly veiled attacks on renewable fuels policies. This report is no exception.

Biofuels are the most affordable low carbon fuel available and are compatible with existing infrastructure.

Claiming increased biofuel production would be a problem for Canadian agriculture and forestry, or that imported biofuels hurt Canada’s energy security is crudely false. Biofuels support domestic farmers and give life to agricultural products that were previously considered waste, such as wood residues. Regarding energy security, open markets are a good thing. It’s perplexing for “The Voice of Canadian Businesses” to now suggest otherwise in an effort to criticize biofuels and clean fuel standards.

Biofuels are the most affordable low carbon fuel available and are compatible with existing infrastructure. Yes, higher carbon prices would lead to higher use and uptake; however, economists have put the needed price for this at $200 per tonne. It’s hard to imagine this being a better path forward for Canadian businesses or the consumers who ultimately will pay the price.

If Canada is to succeed in reducing its greenhouse gas emissions in any meaningful way, it will be the result of a wide range of low carbon fuels and technologies in the mix, and a combination of policies in the market. There is no “one size fits all” policy that works for business and the same is true of the climate. It’s disappointing that a report that could have offered a valuable, business perspective on such a critical public policy discussion fell victim to this all too common pitfall.

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Author: Andrea Kent

Andrea is an expert in clean fuels policy who often speaks across Canada and globally about the importance of renewable fuels and environmental technologies in the modern economy. Andrea served as President of Renewable Industries Canada and is a member of its Board of Directors. Andrea joined Greenfield Global in 2017 as its VP of Government and Public Relations.

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RICanada is the effective voice of Canada’s domestic renewable fuels industry, including many of Ontario’s largest producers. Its member companies worked with local farmers to pioneer Ontario’s ethanol industry. The blending of biofuels into gasoline delivers significant health and environmental benefits. Ethanol reduces greenhouse gas (GHG) emissions by over 60% relative to gasoline. Unlike some other alternative fuels, ethanol is a local and reliable fuel that is already having a positive impact without compelling Ontarians to drive less or purchase new vehicles.

Ontario’s move to an average blend of 15% ethanol in gasoline also supports Ontario farmers by using locally grown corn. This creates more jobs in the agriculture and cleantech sector. It is also great news for retailers and for consumers who want to enjoy cleaner and more affordable options at the fuel pump.

Member Company Statements

Greenfield Global Inc.

“It’s a win-win”, said Howard Field, President and CEO of Greenfield Global Inc. “In addition to making Ontario’s gasoline among the cleanest in the country, moving to an E15 gasoline blend will mean lower prices at the pumps, while supporting jobs, agriculture and innovation, right here in Ontario, where the ethanol is made.”

IGPC Ethanol Inc.

“For our ethanol company that is largely owned by Ontario farmers, these measures will have a direct and positive impact on our business by ensuring that there is a growing market for our made-in-Ontario product” said Kevin Norton, CEO-COO of IGPG Ethanol Inc.

Grain Farmers of Ontario

“This is good news for grain farmers and rural communities from across Ontario, the commitment by Doug Ford’s government to increase the demand for Ontario grown corn ethanol means more jobs, dependable markets for grain farmers and a reduction in greenhouse gas emissions and better air quality for the province.” said Markus Haerle, Chairman, Grain Farmers of Ontario.

About RICanada

Founded in 1984, Renewable Industries Canada (RICanada) is a non-profit organization with a mission to promote the use of value-added products made from renewable resources. RICanada is the industry’s leading voice in raising consumer awareness and in providing input to governments with respect to policies, legislation and regulations affecting the interests of our over 30 member companies.

For further information: Dan Pfeffer, Renewable Industries Canada, d.pfeffer@ricanada.org, T: 1-833-4-RN-FUEL, Twitter: @renewcan, www.ricanada.org

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A CFS for liquid transportation fuels prioritizes lowering greenhouse gas (GHG) emissions in Canada’s largest emitting sector. With similar policies in other jurisdictions there is precedent in place to create a successful CFS that utilizes accessible, low-carbon fuel pathways, specifically biofuels, to realize meaningful emission reductions.

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Canadian biofuels have been scientifically proven to substantially reduce greenhouse gas emissions. Corn ethanol generates up to 62% less emissions than fossil fuels, with cellulosic ethanol producing up to 87% less, and biodiesel – which can be made from used animal fats – by over 100% less emissions than traditional diesel.

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This letter is to respond to Ross McKitrick and Douglas Auld’s

December 20th piece on Ontario’s new fuel standard. It’s difficult to

tell whether the authors were intentionally misrepresenting the facts

or are actually misinformed. Given that at least one of the authors is a

known denier of climate science, readers can draw their own

conclusions.

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