Canadian Biomass Magazine

New Clean Fuel Standard policies a welcome step forward: RICanada

December 20, 2018
By Renewable Industries Canada

Dec. 20, 2018 - Renewable Industries Canada (RICanada) today welcomed the release of the federal Clean Fuel Standard (CFS) Regulatory Design Paper, and the draft regulatory framework of the Output Based Pricing Standard (OBPS). These ambitious policies mark two essential steps necessary to achieving the Government of Canada's Paris Accord commitments on greenhouse gas (GHG) reductions.

With today’s announcement, Environment and Climate Change Canada (ECCC) brings significant clarity to the future of the CFS. RICanada has long been a proponent of a strong emissions reduction target for liquid fuels. RICanada member companies applaud ECCC’s leadership in setting the target for this stream at 23 megatonnes. This approach will drive significant GHG emission reductions in the transportation and oil and gas sectors, which together account for roughly half of Canadian GHG emissions. Biofuels are the most impactful contributor to reducing emissions under the CFS, due to their wide availability, low price point, and low carbon intensities; facts supported by independent analysis by third parties as well as Environment and Climate Change Canada.

Today’s announcement brings Canada one step closer to having an vibrant and accessible credit market that rewards the increased use of low carbon fuels. We look forward to continuing to work with government and industry stakeholders as details on credit trading under the CFS develop so that our shared goal of a transparent market that incents investment in low carbon fuels is realized.

While recognizing that there are still a number of details that need to be finalized, RICanada is optimistic that a CFS incorporating a sensible lifecycle model will result in a policy that provides certainty and clarity for industry to deliver the targeted GHG reductions.

For its part, the OBPS framework will provide an important and complementary incentive for industry to reduce emission intensity while penalizing industries that pollute above industry baseline standards.


“Today’s announcement reinforces that biofuels and other low carbon fuel alternatives are vital to winning the fight against climate change, and creates the business conditions needed to transition fuelling our transportation system in the coming decades,” said Howard Field, president and CEO of Greenfield Global Inc. “It means higher ethanol blending as well as newer technologies like converting waste to fuels and biogas, which is significant for our communities, economy, and environment alike.” 

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