On July 1st, Canada’s Clean Fuel Regulations (CFR) will come into force. It resembles the clean fuel standards used in British Columbia, California, Oregon, Washington State, and some countries in the EU. Once fully implemented, Canada’s CFR is expected to help cut up to 26.6 million metric tons of greenhouse gas (GHG) pollution by 2030.
By design, the CFR favours lower-carbon alternatives to conventional fuels. Biofuels, like ethanol and biomass-based diesel, are the most affordable, available, and essential solution to climate change we have.
Fuel standards in British Columbia resulted in higher ethanol blending to meet emission targets. The wholesale price of ethanol is routinely lower than gasoline. In the United States (which supports up to 85% ethanol blends), a 15% ethanol blend can save a family 3.6 cents per litre CAD on average.
National ethanol blending today is at least 5%, with some provinces, like Ontario, having more ambitious requirements. Based on the US experience, Canadian consumers stand to benefit from increased ethanol blending. For example, motorists in Atlantic Canada could be among the biggest winners as the gasoline biofuel level rises from a current 5% average to as high as 15% by 2030 with the CFR.
Renewable Industries Canada members have produced reliable, low-carbon fuels for decades and continue innovating to reach even lower carbon intensities. We look forward to working with customers and governments nationwide to ensure biofuels remain an impactful and economically sustainable contributor to reducing Canada’s emissions under the CFR due to their wide availability and lower price point.
For more information about Canada’s new national clean fuel standard, please see Environment and Climate Change Canada’s policy overview.
About RICanada
Founded in 1984, Renewable Industries Canada (RICanada) is a business coalition representing Canada’s first and foremost biofuel producers. With a mission to promote the use of value-added products made from renewable resources, our members work to raise consumer awareness, offer expertise on low-carbon policies and markets, and are helping build a sustainable future powered by clean technology and fuels.
Twitter: @renewcan
SOURCE: Renewable Industries Canada
For further information: Dan Pfeffer, Renewable Industries Canada, d.pfeffer@ricanada.org, T: 1-833-4-RN-FUEL