Canada proposes Clean Fuel Regulations supporting RD and SAF
By supporting low-carbon fuels produced at home, Covenant Energy believes that these amendments will help incentivize Canadian investment and home-grown production of biofuels – if the government adds a proper balancing mechanism to ensure demand stays whole.
Because a credit multiplier awards more credits for each litre of eligible fuel, without a balancing mechanism fuel suppliers could meet their CFR obligations with fewer total litres of low-carbon fuel. Covenant Energy urges the government of Canada to account for this in its final publication of the amendments to ensure that the overall demand for biofuels does not decrease. Otherwise, a measure designed to support domestic production and Canadian agriculture, could shrink the market it is meant to strengthen.
Category: Policy
