Fed to delay new clean fuel standards, oil and gas sector demanding greater emission reductions

The federal government has postponed the release of new greenhouse gas emission (GHG) standards until late 2023, but new regulations are expected to significantly reduce emissions in the oil and gas sector by 2030. It will be.

Last week, the Federal Cabinet approved the final rules of the Clean Fuel Standards (CFS), which were introduced in 2016 as part of the Free Government’s Climate Change Program. The regulation was acquired by Canadian Press on June 28, after being leaked before the scheduled issue date of July 6.

The proposed regulation was originally scheduled for spring 2020, but was not published until December 2021, after which a six-month comment period was required.

The draft rule stated that the new standard would come into effect in December 2022, but the final rule states that the first compliance check is scheduled for a year later. The final regulation is expected to increase emissions reductions from both gasoline and diesel by 2030 for the oil and gas sector.

Using a baseline number set using 2016 average carbon strength (measured GHG emissions from transport fuel), the proposed regulation will reduce gasoline carbon strength by 2.5% in December 2022. It was aimed at that. However, the final plan adjusted that baseline, with gasoline down 3.6% and diesel down 3.8% by December 2023.

With regard to the upper limit of emission intensity, which drops annually to 203o, the original plan was to reduce both gasoline and diesel emission intensity by 12.5% ​​by 2030. The final rule requires a 14.7% reduction in gasoline and a 15% reduction in diesel by 2030. ..

Emission intensity is calculated based on what is called life cycle emissions. This includes every ounce of carbon dioxide, methane, or other GHGs produced during oil and gas extraction, processing, refining, upgrades, transportation, and combustion.

“CFS will be an important tool to complement pollution pricing and pending oil and gas sector emission caps, reduce emissions and promote the use of clean fuels and technologies in Canada. “The office of Environment Minister Stephen Gilbo told the Canadian press in June. 27 statements.

In June 2020, the federal government announced that it would reduce its standards early in its implementation as oil and gas companies suffered a decline in profits during the COVID-19 pandemic. Many Canadian oil and gas companies reported huge profits in the first quarter of 2022 due to soaring global oil prices following Russia’s invasion of Ukraine.

In May, Guilbeault told Canadian Press that they were hoping that these plunge profits would be invested in clean technology.

Canadian Press contributed to this article.

Andrew Chen


Andrew Chen is a Toronto-based Epoch Times reporter.