Canadian refiners face toughened regulation of their products and facilities under plans for a clean-fuel standard published for comment by the federal government.
Seeking to cut greenhouse gas emissions by 30 megatonnes/year by 2030, the standard would include “a market-based approach, such as a crediting and trading system,” according to a discussion paper from Environment and Climate Change Canada (ECCC).
And it would “incent the use of a broad range of lower-carbon fuels and alternative sources and technologies, such as electricity, renewable natural gas, hydrogen, and renewable fuels.”
The standard would apply to liquid, gaseous, and solid fuels used not only in transportation but also in industry, homes, and buildings.
The targeted emissions cut, part of a federal program to lower GHG emissions by 30% during 2005-30, would be imposed atop measures now in place.
The ECCC said it is considering “overall life-cycle carbon-intensity reductions” of 10-15% by 2030. The reductions would apply to a baseline that “could be a sector-wide average, facility-specific, or set on some other basis.”
The federal government now imposes volumetric renewable-content requirements of 5% of gasoline and 2% of diesel and heating distillate oil sold by refiners and importers.
Next year it will require provinces to implement programs equivalent to taxing carbon dioxide at rates beginning at $10/tonne and rising to $50/tonne in 2022.
The ECCC is taking written comments on the clean-fuel standard until Apr. 25.