As Ottawa prepares to unveil its Clean Fuel Standard, industry warns of refinery shutdowns

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Shutting down a refinery will lead to higher fuel costs for consumers and investment relocating elsewhere, expert says

Clean fuel standards in places like California require liquid fuels such as gasoline and diesel to be blended with additives like ethanol or other biofuels to reduce their emission intensity. Canada’s CFS will stipulate fuel providers, or refineries, must reduce their emissions by 12 per cent below 2016 levels by 2030.

Ottawa’s goal for the CFS is a 30-megatonne reduction in the country’s carbon emissions by 2030. The biggest emissions reduction are expected to come from liquid fuels such as gasoline, diesel and jet fuel.Article content continued There is a wide range of estimates on how the CFS will affect gasoline and diesel prices, with some estimates as low as 2 cents per litre for fuel all the way up to 15 cents per litre.

“I think it’s going to have a significant impact,” McTeague said, adding that he believes that even without refineries shutting down, “it’s going to cost you anywhere from 10 cents to 15 cents per litre of gasoline.”

 

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