On July 19, the Federal Government announced an adjusted timeline for the Clean Fuel Standard (CFS), stating, “Environment and Climate Change Canada (ECCC) recognizes the need for additional time to work with interested parties to conduct robust technical and economic analysis to ensure that the CFS achieves its goal while maintaining Canadian competitiveness.”
CIAC welcomes the decision to delay the CFS and supports the government’s efforts to work with stakeholders on the regulation. As it is currently being proposed, the CFS will include standards for industry and buildings along with transportation, making it the first of its kind in the world. It is a complex regulatory piece requiring thorough engagement and careful development to ensure that it complements, and does not duplicate, current provincial and federal carbon pricing policies.
The new approach will first develop standards for the liquid fuel stream followed by gaseous and solid fuel streams. The timeline has been adjusted as such:
- For liquid fuels: Publish proposed regulations in spring-summer 2019 and final regulations in 2020, with requirements coming into force by 2022.
- For gaseous and solid fuels: Publish proposed regulations in fall 2020, final regulations in 2021 with requirements coming into force by 2023
This fall, we can expect the release of the regulatory design paper and a cost-benefit analysis framework. These documents will allow industry to better understand the economic breakdown and implementation of the regulation. CIAC is supportive of carbon pricing and reducing emissions, however, the CFS has many direct and indirect implications and costs for the chemistry industry.
We are hopeful that the extended timelines for the CFS will provide for better consultation and cooperation between industry and the government to create a regulation that supports a low-carbon economy, competitiveness and innovation for the future of Canadians.
CIAC will continue to advocate on behalf of our member-companies and looks forward to working with the federal government to ensure the CFS framework is realistic, effective, and addresses industry concerns on competitiveness and feasibility.