We have long imported ethanol from America, so that's not a change,' said Ian Thomson, president of Advanced Biofuels Canada, an industry association. However, the country is already having to rely on imports to meet existing federal and provincial requirements. Producing more ethanol in Canada seems like a natural fit, considering the amount of canola and soy that are grown. 'If we actually want to reach our emissions reductions targets, this is the kind of policy that we need to be implementing,' said Michelle Coates Mather, executive director of the Canadian Transportation Alliance, a not-for-profit think-tank that researches the future of road transportation.Ĭanada ranks far below the global median for biofuel usage, according to a study released by the organization in February. To lower the carbon intensity of fuel, experts say adding ethanol is usually the most affordable option, followed by biodiesel and renewable diesel. The transportation sector is the second-largest source of emissions in the country - behind the oil and gas sector - accounting for about 25 per cent of total emissions. Overall, tailpipe emissions from all of the cars, trucks, SUVs and freight vehicles are a major obstacle toward Canada reaching its climate targets.

The federal government's focus on reducing the carbon intensity of fuels is understandable, considering how emissions from the transportation sector have increased by 16 per cent since 2005. Ottawa is OK with high pump prices down the road, he said, because 'they just want to try to get people to switch over to EVs.' Tailpipe emissions on the rise But every year, as that target begins to bind more and more, then the cost curve starts to get pretty steep,' said Ross McKitrick, an economics professor at the University of Guelph in Ontario, who has co-authored a study modelling the economic effects of the clean fuel regulations. ' July 1, people aren't really going to notice anything. Manitoba, federal governments pledge nearly $3M for study on sustainable aviation fuel facility.'There's a zero per cent chance it would be worse than what the Parliamentary Budget Office is saying,' said Wolinetz, who predicts a cost impact of under 10 cents a litre by 2030. Experts agree, saying that estimate is likely the maximum price impact.

Pain at the pumpsĪs the clean fuel requirements ramp up, so will prices at the pump as fuel companies face higher expenses, such as the purchase of more biofuels.īy 2030, the Parliamentary Budget Office predicts a price increase of 17 cents per litre - although it warns this is considered an upper limit. There's also a credit trading system that allows companies to spend money to comply.Īdding more ethanol to gasoline and diesel is likely the most common way that industry will comply, say experts, because it's already being done, just in smaller quantities. calls on Ottawa to hold off on new clean fuel regulationsĬompanies have to achieve carbon emission reduction targets each year by earning credits through improvements to production facilities (such as building a carbon capture and storage facility at a refinery), lowering the carbon intensity of the actual fuel (by adding more ethanol, for instance) and by offering electric vehicle charging and hydrogen vehicle fuelling.

New fuel regulations will increase price of fuel and decrease GDP: budget watchdog.

Keep it clean sign