National associations call for a Canadian ‘Clean Fuel Strategy’

Canada’s national clean fuels associations forecast greenhouse gas (GHG) emissions reductions of over 50 million tonnes (Mt) per year by 2030 through greater production and use of renewable energy in Canada. The associations, Advanced Biofuels Canada (ABFC), Canadian Biogas Association (CBA), Canadian Gas Association (CGA), Electric Mobility Canada (EMC) and Wood Pellet Association of Canada (WPAC), represent a significant part of the spectrum of Canada’s primary clean fuel industries. Together, we share a belief that investments to increase the production and use of clean and renewable fuels and electric vehicles (EVs) to meet Canada’s GHG emissions targets will stimulate clean growth, create  jobs, and achieve significant greenhouse gas reductions over the next decade.

Collectively, the associations represent technologies that can, with the right policy measures in place, exceed the proposed federal Clean Fuel Standard’s objective of 30 Mt of annual GHG emission reductions by 2030. Estimates of potential emission reductions are based on modelling work for the joint industry-federal government steering committee looking at the competitiveness of clean fuel investment in Canada.

The results demonstrate significant annual emissions reduction potential by 2030 from adopting clean and renewable liquid, gaseous, and solid fuels, and from switching to electric vehicle use. ABFC estimates that 15 Mt of reductions per year are achievable by 2030 by incorporating modest levels of biofuels and other non-fossil clean fuels into transport fuels. The CBA and CGA estimate that 14 Mt of reductions are attainable by introducing renewable gases into transportation, building heating, and industrial processes. EMC estimates that 16Mt of GHG reductions are achievable through the electrification of light, medium, and heavy-duty vehicles, including buses. WPAC estimates that 5.5 Mt of reductions can be achieved through fuel switching to wood pellets to provide heat in the residential, commercial, and institution sectors, and from replacing coal with pellets for power generation. Across all sectors, there is even greater potential to achieve stronger results. In aggregate, the estimates demonstrate Canada’s potential to economically and efficiently reduce GHG emissions by fuelling our economy with clean and renewable fuels made and used in Canada.

The results will not come easily. To attract the capital investments ($ billions) necessary to support this transition, the associations have recommended that the federal government adopt a Clean Fuel Strategy by 2020. The strategy would include setting a clear path to clean and renewable fuel use by 2030:

1. Establishing clear market signals for clean fuels and electric vehicles
2. Aligning clean and renewable fuel regulations to meet targeted clean fuel and EV use
3. Establish clean fuel program funding to support clean and renewable fuel production capacity and infrastructure investments, and support EV adoption
4. Support research and development programs to maintain Canadian leadership in clean fuel technologies and innovation