10 THE FEDERAL GOVERNMENT’S proposed Clean Fuel Regulation (CFR) has undergone change and clarification since it was first introduced (as the “Clean Fuel Standard”) in 2020. Although questions about the environmental assessment of fuel feedstocks remain, Grain Farmers of Ontario’s position has shifted to one of cautious optimism. More specifically, initial clarifications on how the environmental impact of fuel feedstocks will be assessed — and by consequence, whether a given load of grain can be sold Clean Fuel Regulation update GOOD NEWS FOR ONTARIO GROWERS Matt McIntosh for fuel production — indicate Ontario grain growers should remain competitive as feedstock suppliers. WHAT IS THE CLEAN FUEL REGULATION? As described by the Ministry of Environment and Climate Change, the Clean Fuel Regulation’s purpose is to increase incentives for developing and adopting clean fuels, technologies, and processes. Part of the regulation requires suppliers of liquid fossil fuel to gradually reduce the carbon intensity from the fuels they produce and sell. The goal is to lower the carbon intensity of gasoline and diesel used in Canada by 15 per cent by 2030. The regulations establish a credit market, where each credit represents a lifecycle emission reduction of one tonne of carbon dioxide. Fuel producers and suppliers demonstrate compliance by creating or acquiring credits from other creators. There are three ways to generate credits: 1. Undertaking projects that reduce the lifecycle carbon intensity of liquid fossil fuels (e.g., carbon capture and storage, onsite renewable electricity, co-processing); 2. Supplying low carbon fuels (e.g., ethanol, biodiesel); 3. Supplying fuel or energy to advanced vehicle technology (e.g., electricity or hydrogen in vehicles). The crops required to produce low carbon fuels must also meet environmental production requirements. This requirement was an initial concern for Grain Farmers of Ontario since there appeared to be overarching restrictions on where fuel grain could be grown, among other regulatory characteristics. It was not known, for example, if land use and biodiversity criteria would bar corn produced in close proximity to waterways or buffer strips from the clean fuels market — causing concern that some growers would face a reduction in where they could produce biofuel crops. Market Development
RkJQdWJsaXNoZXIy MTQzODE4