Environment and Climate Change Canada releases proposed regulations for Clean Fuel Standard

In November 2016, the federal government announced plans to implement a clean fuel standard (CFS) to reduce Canada’s greenhouse gas (GHG) emissions. The objective of the proposed CFS is to achieve 30 megatonnes of annual reductions in GHG emissions by 2030, contributing to Canada’s effort to achieve its overall GHG mitigation target of 30% emission reduction below 2005 levels by 2030.

The CFS will establish lifecycle carbon intensity requirements separately for liquid, gaseous and solid fuels that are used in transportation, industry and buildings. Consultations on the development of the CFS were launched in January 2017 and a discussion paper was released in February, seeking input to help inform the development of a regulatory framework. In November 2017, ECCC released a report entitled Clean fuel standard: summary of stakeholder written comments on the discussion paper, which summarized stakeholder feedback received during the consultation period.

On December 13, 2017, ECCC published a regulatory framework on the CFS, which outlines the key elements of the design of the CFS regulation, including: scope, regulated parties, carbon intensity approach, timing, and potential compliance options such as credit trading.

The proposed CFS will use a lifecycle approach to set carbon intensity values and requirements, accounting for the amount of GHG emitted to produce a unit of energy. ECCC has indicated that the CFS may lead to changes in crop demand and land management practices that impact GHG emissions, which will be included. However, indirect GHG emissions that may result from the clean fuel standard will not be considered in the design, at least initially. The proposed CFS regulatory framework contemplates the following key design elements:

  • Partitioning – The CFS will set separate carbon intensity requirements for sub-sets of fuels, as well as rules for credit trading, in order to achieve GHG reductions from each of the transportation, building and industry sectors. In particular, the CFS will set separate carbon intensity requirements for liquid, gaseous and solid fuel streams. For gaseous fuels, consideration will be given to setting volumetric requirements for renewable content or a hybrid approach, such as volumetric requirements with GHG performance standards. Approximately 80% of liquid fuels are used for transportation. Setting a separate carbon intensity target for liquid fuels will ensure GHG reductions are achieved from transportation fuels. Consideration may be given to further groupings of fuel types within fuel streams (e.g. grouping transportation fuels together in the liquid fuel stream), along with some trading of credits between the fuel streams.
  • Scope – The CFS will apply to liquid, gaseous and solid fuels combusted for the purpose of creating energy including “self-produced and used” fuels, that is, those fuels that are used by producers or importers. The CFS will not apply to fuels when they are primarily used as feedstocks in industrial processes or when used for non-combustion purposes (for example, solvents). Certain fuels will be excluded from application of the carbon intensity requirements of the clean fuel standard, including fuels that are exported from Canada, fuels that are in transit through Canada, and coal combusted at facilities that are covered by coal-fired electricity GHG regulations. Other exclusions may be considered.
  • Regulated parties – Fuel producers and importers, or in some cases distributors, will be subject to the clean fuel standard and will need to meet specific requirements for the fuels that they produce, import or distribute.
    • In the case of liquid fuels:
      • the producers or importers of the liquid fuel (for example, gasoline, diesel, and heavy fuel oil) will be the regulated parties.
    • In the case of gaseous fuels:
      • for pipeline-quality natural gas delivered via gas distribution pipeline systems, the distributors of the natural gas will be the regulated parties.
      • for other gaseous fuels supplied to end-users other than through a gas distribution pipeline system (for example, biogas, natural gas from producers),the regulated parties remain to be determined.
    • In the case of solid fuels:
      • the producers or importers of the fuel (for example, coal and petroleum coke) will be the regulated parties.
    • Setting carbon intensity requirements – Carbon intensity values will be expressed in grams of carbon dioxide equivalents (g CO2e) per unit of energy in megajoules (MJ), and will account for GHG emissions over the lifecycle of a fuel. Carbon intensity values will not include an estimate of the impact of indirect land use change on GHG emissions. Baseline carbon intensity values and carbon intensity requirements will be set for either each fuel in a stream (liquid, gaseous, solid) or for groupings that include some or all fuels in a stream. The CFS regulations will set carbon intensity requirements expressed either as absolute values or as percent reductions from the relevant baselines. The carbon intensity requirements will become more stringent over time, with the goal of achieving at least 30 Mt CO2e of emission reductions annually commencing in 2030.
    • Calculation of lifecycle carbon intensity of fuels – For renewable fuels, other low carbon fuels and energy sources and technologies, carbon intensity will be differentiated by type and origin of the fuel to reflect the GHG emissions associated with different feedstocks and technologies. In the case of crude oil-based fuels, the regulation will not differentiate among crude oil types, or on whether the crude oil is produced in or imported into Canada. A Canadian-average default carbon-intensity for crude oil produced and imported and consumed in Canada will be used. For other fossil fuels, consideration is being given to whether or not the same approach as for crude oil-based fuels should be applied.
    • Renewable fuel content – The federal Renewable Fuels Regulations require 5% renewable content in gasoline and 2% renewable content in diesel fuel and heating distillate oil. In the short-term, these volumetric requirements will be maintained. In the longer-term, the CFS will replace the Renewable Fuels Regulations. With respect to natural gas, setting carbon intensity requirements is the intended approach, but further consideration will be given to setting volumetric requirements for renewable content or a hybrid approach, such as volumetric requirements with GHG performance standards.
    • Compliance pathways – The CFS will provide a range of compliance pathways other than reducing the carbon intensity of the fuel produced or imported for use in Canada. A key pathway for fossil fuel suppliers will be to include renewable fuel content in their product. Under the proposed CFS, it will be possible to generate compliance credits for actions that improve carbon intensity throughout the lifecycle of the fuel. One issue to be determined is whether to specify a minimum threshold for process improvements that qualify for credit creation. It will also be possible to generate credits through fuel switching and the deployment of energy sources and technologies that displace fossil fuels, such as electric vehicles. Credits will be tradeable among regulated parties within each stream of fuels (liquid, gaseous and solid). There will also be limited banking of credits. Consideration is being given to allowing some use of credits across streams of fuels.
    • Timing – ECCC plans to publish draft regulations in Canada Gazette, Part I in 2018 and final regulations in Canada Gazette, Part II in mid-2019. Carbon intensity requirements for liquid, gaseous and solid fuel streams will come into force at the same time; however, the coming into force date is still to be determined.

ECCC will be accepting written comments on the proposed CFS regulatory framework until January 19, 2018.  Following stakeholder consultations in early 2018, ECCC expects to publish proposed regulations in late, followed by publication of final regulations in mid-2019.

Vancouver Mayor Signs Fossil-Fuel-Free Streets Declaration with Other C40 Mayors

In many cities around the world, the most significant source of greenhouse gas (GHG) emissions and air pollutants is transportation. In order to tackle air pollution and climate change, 12 mayors from the cities of Vancouver, Seattle, London, Paris, Los Angeles, Copenhagen, Barcelona, Quito, Mexico City, Milan, Auckland & Cape Town signed the C40 Fossil-Fuel-Free Streets Declaration on 23 October 2017, which commits them to a series of actions to support a “future where walking, cycling and shared transport are how the majority of citizens move around” these cities.

C40 is a network of the world’s megacities committed to addressing climate change. The C40 Cities Climate Leadership Group connects more than 90 of the world’s greatest cities, representing over 650 million people and one quarter of the global economy. One third of GHG emissions from C40 cities come from transport and traffic is the biggest source of air pollution, globally responsible for up to one quarter of particulate matter in the air. By signing the C40 Fossil-Fuel-Free Streets Declaration, the mayors pledged to (1) procure only zero-emission buses from 2025, and (2) ensure that a major area of their city is zero emission by 2030.

To meet this commitment, the mayors will:

  • Transform their cities through people-friendly planning policies.
  • Increase the rates of walking, cycling and the use of public and shared transport that is accessible to all citizens.
  • Reduce the number of polluting vehicles on their streets and transition away from vehicles powered by fossil fuels.
  • Lead by example by procuring zero emission vehicles for our city fleets as quickly as possible.
  • Collaborate with suppliers, fleet operators and businesses to accelerate the shift to zero emissions vehicles and reduce vehicle miles in our cities.
  • Publicly report every two years on the progress the cities are making towards these goals.

Each signatory city has set out concrete actions in Green and Healthy Streets: Fossil-Fuel-Free Streets Declaration – Planned Actions to Deliver Commitments. The City of Vancouver has set out the following actions to achieve its commitments under the Declaration:

  • Building upon near-term electric bus pilots, the City will work with the regional transit authority to transition to zero-emission bus procurement.
  • The City will build upon existing bus/ taxi-only and pedestrian only zones in the city centre to create zero emissions zones.
  • Viaduct structures east of the city centre will be removed by 2019 and replaced with a complete street network to reconnect downtown with historic communities to the east and south in a new inclusive waterfront district. One of the guiding principles of this transformative project is enhanced pedestrian and cyclist movement, increasing safety and comfort for people who walk, bike, and take transit.
  • Continue investments in walking and cycling infrastructure, including Vancouver’s bike-share program, which has installed over 115 stations and 1,200 bikes since launching in 2016. Continue improving accessibility of existing cycling infrastructure to lower barriers for riders of all ages and abilities. As of 2016, Vancouver residents made half of their trips by walking, cycling, and transit. 10% of residents cycled to work and nearly a quarter walked to work.
  • There are over 250 public and private electric-vehicle charging stations throughout Vancouver. We will build a holistic charging network and catalyse private-vehicle transition to electric vehicles, by expanding home, workplace, and public electric vehicle charging infrastructure. Over the next five years, Vancouver will deploy an additional 20- 25 fast-charging stations, 40 Level 2 stations, and enable charging at home through curbside charging pilots and removing barriers to charger installation in multi-unit residential buildings.
  • Continue low and zero-emission vehicle procurement, fleet right-sizing, and route-planning/dispatching upgrades for City-owned fleet. Vancouver currently maintains one of the largest zero-emission municipal fleets in Canada, with 33 electric and 59 hybrid vehicles. We have an overall fleet GHG reduction target of 30% from 2007 levels by 2020, and a procurement target of 115 electric vehicles, 112 hybrids, 60 compressed natural gas vehicles and continued use of B20 bio-diesel.
  • Create a green enterprise industrial zone to foster co-location, circular economy, and fleet sharing amongst businesses. Work with business community to promote and support fleet transition to zero emission vehicles and smart routing to reduce distances driven. Vancouver’s Green and Digital Demonstration Program uses City infrastructure as demonstration platforms for pre-commercial clean-tech, including low-/zero-emission transportation.

The City annually commits 100% of the carbon tax it pays in its corporate operations to fund carbon mitigation and sustainability programs.

 

Ontario Carbon Pricing Plan

Ontario Premier Kathleen Wynne announced on January 14, 2015 that a carbon pricing plan is currently under consideration by the provincial government. This follows the signing of a Memorandum of Understanding Concerning Concerted Climate Change Actions by Ontario and Quebec in November 2014, which includes a commitment by Ontario to explore the use of market-based mechanisms to curb emissions. To that end, Environment Minister Glen Murray is in the process of preparing a report on the various options to put a price on carbon, including the potential implementation of a carbon tax or a cap-and-trade system. It is anticipated that more details will be released about the carbon pricing plan in spring 2015.


Twitter

C40 and World Bank Sign Agreement to Form Climate Change Action Partnership

On  June 1, 2011, the C40 Cities Climate Leadership Group (C40) and the World Bank signed an agreement that will help cities accelerate activities to reduce greenhouse gas emissions and adapt to climate change. The C40 is an organization of large and engaged cities from around the world committed to implementing meaningful and sustainable climate-related actions locally that will help address climate change globally. C40 cities account for 8 percent of the global population, 12 percent of global greenhouse gas emissions and 21 percent of global GDP.  In 2006, the C40 partnered with the Clinton Climate Initiative to tackle climate change in cities.

The agreement was signed by C40 Chair New York City Mayor Michael R. Bloomberg and World Bank Group President Robert B. Zoellick during the C40 Cities Mayors Summit in Sao Paulo, Brazil.  Mayor Michael R. Bloomberg said: “This unique partnership with the World Bank will help solve many of the problems that cities face in obtaining financing for climate-related projects, both from the World Bank and other lenders. It will also make it easier for C40 cities to access the resources of the World Bank.”   World Bank Group President Robert B. Zoellick said: “This agreement will help us work with C40 cities to integrate growth planning with climate change adaptation and mitigation, with special attention to the vulnerabilities of the urban poor.”

The key objective of this new partnership is to enable megacities to expand mitigation and adaptation actions while at the same time, strengthen and protect economies, reduce poverty and protect vulnerable populations. In particular, it will address structural issues that make it difficult for cities to finance climate actions that have been identified by both C40 and the World Bank Group.

Under the agreement, the C40 and the World Bank will establish:

•         A consistent approach to climate action plans and strategies in large cities to enable stronger partnerships between cities on shared climate goals, and to permit potential investors to identify opportunities across cities. The lack of a standard approach or process – such as exists for national government action plans – has made it difficult for investors and grantors to assess city action plans and thus has made them reluctant to fund projects.

 

•    A common approach to measuring and reporting on city greenhouse gas emissions to allow verifiable and consistent monitoring of emissions reductions, identify actions that result in the greatest emission reductions, and facilitate access to carbon finance.  This is necessary because carbon finance requires quantitative assessments of impacts, but currently no single standard for reporting citywide carbon emissions exists; the Carbon Disclosure Project’s Measurement for Management report identified several different protocols in use by C40 cities, with no single protocol used by a majority.

 

In addition, the World Bank will establish a single, dedicated entry point for C40 cities to access World Bank climate change-related capacity building and technical assistance programs, and climate finance initiatives by December 1, 2011.  Furthermore, the C40 will identify and work with national governments who are interested in funding climate change projects and identify private sector partners to provide project financing in C40 cities.  In turn, the World Bank will identify opportunities from among sources of concessional finance, carbon finance, and innovative market and risk management instruments as well as the private sector through the International Finance Corporation. These may be accessed by project developers supporting climate action in cities.

For more information on this partnership and other C40 initiatives, please refer to the C40 web site

GHG

What is greenhouse gas? or What are the greenhouse gases?

 

GHG is the acronym widely used to refer to “Greenhouse Gases”.

They are relevant in the context of their role in the greenhouse effect. GHGs in the atmosphere absorb and emit radiation within the thermal infrared range. In colloquial terms, they trap heat under the atmospheric cover of our planet.

The most important ones for GHG accounting are:

Carbon Dioxide (C02)
Methane (CH4)
Nitrous Oxide (N20)
Hydrofluorocarbons (HFCs)
Hydrofluoroethers (HFEs)
Perfluorocarbons (PFCs)
Nitrogen Trifluoride (NF3)
Sulphur Hexafluoride (SF6)