The Clean Fuel Standard is the single largest mitigation contribution in the pan-Canadian Framework on Clean Growth and Climate Change.
By 2030 it aims to reduce lifecycle emissions by 30Mt CO2 eq for all fuels.
In California and British Columbia, the CFS has been designed to help level the playing field between fossil fuels and non-fossil fuel energy sources in the transportation sector.
In Canada, there is concern that the CFS will not be able to deliver the needed market signal towards non-fossil fuel transportation energy sources.
This is because the target for reductions slated for the CFS can be achieved by reducing the carbon intensity of fossil fuels. As such, the movement towards low-carbon non-fossil fuel transportation fuels is likely to see minimal uptake.
As such, there is significant concern that the development of a much needed non-fossil fuel market will be delayed, and the opportunity to level the playing field between fossil fuel and non-fossil fuel transportation energy sources will be lost.
This can be corrected by ensuring the CFS focuses both on reducing the carbon intensity of fossil fuel transportation energy sources AND ensures the market's movement towards non-fossil fuel transportation energy sources.