Sander Duncanson
Jul 6, 2023
The federal government’s Clean Fuel Regulations is designed to enforce the reduction of emissions from every stage of extraction, processing, distribution, and end-use of gasoline and diesel. The goal is to reduce its carbon intensity to 15% below 2016 levels by 2030.
“There are some things that the federal government did with these regulations that are actually very good,” Sander Duncanson, Co-Chair of Osler’s Regulatory, Indigenous and Environmental Group told Aidan Macnab of Canadian Lawyer. “But there is room for improvement.”
Sander was speaking about the recent Clean Fuel Regulations that came into effect on July 1, 2023. Sander is advising companies on how to navigate these new regulations.
Compared to other jurisdictions, Sander says that Canada’s regulations take on a broader, more “industry agnostic” approach.
“I think if the objective is just to lower the carbon intensity of fuels, it's better, in my view, to take an open-minded and broad approach to support anything that achieves that goal,” says Sander.
The regulations bring another carbon-compliance credit market to Canada, where regulated parties can create and buy credits to comply with reduction requirements. Parties with extra credits can accumulate them for later use or sell them.
“There are lots of different types of activities that could potentially generate credits under this regime, so fuel suppliers are looking at actively investing in those projects so that they can create credits themselves,” says Sander. “They're also looking at purchasing credits from third parties.”
Sander reveals that the general feedback from clients on the new Clean Fuel Regulations is the need for certainty.
“Right across the board, whether you're talking about large fuel suppliers, small fuel importers, or non-regulated parties that are looking to create credits – they all want more clarity on what exactly the regulations provide for and consistent interpretation and application of the regulations.”
Read the full article published by Canadian Lawyer.