Renewable Fuel Standards Within a Low-Carbon Fuel Strategy

Environment and Climate Change Canada is considering the introduction of a Clean Fuel Standard (CFS) to regulate a gradual decrease in the average carbon intensity of transportation fuels and others. This briefing examines the arguments in favour of retaining a minimum blend mandate within a CFS. It considers the policy options and requirements that will ensure that Canada’s ethanol industry continues to expand and commercialize future production technologies. The briefing compiles data for the assessed benefits of ethanol—benefits to farmers and the economic value of blending ethanol as a source of octane rather than alternatives. It also compiles data with respect to the financial contributions that Canadian governments have made through the years and contemplates the fuels distribution infrastructure that will be required to accommodate higher-level ethanol blends. This is particularly important as Canada seeks to reduce GHG emissions from transportation. Subsequent briefings will consider several of these elements in further detail.