Canada introduces new fuel regulation
We tell you what to expect from it.
In three weeks, Canada will adopt new regulations on the use of "clean fuels. This is part of a big government program to move to a low-carbon economy. The most obvious consequences of the innovations are another increase in gasoline prices. It will become even more expensive to use.
Canadians are outraged by the rules and are already calling them a "new carbon tax. This time they are joined by the premiers of the Atlantic provinces and Saskatchewan. They are asking the federal government to delay or cancel them altogether. Saskatchewan Premier Scott Moe, for example, believes the regions of the country will be unequally affected by them. Not all Canadians have the means and ability to give up gasoline and conventional transportation, and all provinces have different infrastructure. Not everywhere will be able to use an electric car. And in most cities, there is no place to charge the vehicle.
The rules will take effect July 1. They are designed to reduce the "carbon intensity" of vehicle fuels available on the Canadian market. Carbon intensity shows how many emissions a vehicle will produce to produce a given amount of energy. The new rules don't just cover fuel consumption, but its entire life cycle, from production to transportation.
The rules are aimed at fuel producers. They will have to reduce the carbon intensity of their products in any way they can: add ethanol or biofuels to fuel, reduce emissions from refineries, etc. They will have a year to do this. Industries that produce less emissions than the government has set will receive different incentives.
The only problem with this utopia is the increase in fuel prices for cars that ordinary Canadians will face. It is not yet clear what it will be. Environment Canada predicts that by 2030 a liter of fuel will rise in price from CAD 0,06 to 0,13. On top of that, a carbon tax will raise prices: it will make a liter of fuel CAD 0,37 more expensive.
The same ministry has calculated that by 2030, fuel taxes will hurt GDP by CAD 9 billion, but carbon emissions will be reduced by 27 million tons.
Low-income people will be the hardest hit by the innovations — they spend a large part of their income on fuel. Also, the damage will be uneven for different provinces. Where infrastructure is better, distances are shorter, and various goods are more affordable, the effect of the restrictions will be almost imperceptible. For example, a B.C. family would only cost CAD 384 a year under the new rules. Similar families in Alberta and Saskatchewan would lose CAD 1117 and CAD 1157.
Of course, many Canadians are not happy about this. However, the authors of the innovations believe that global warming will cost Canada more. Because of climate change, the country has already been hit by a record number of wildfires.
