Biofuel Consumption Surges Following Implementation of Canada’s Clear Gas Rules: Biofuels in Canada 2024 report
New report reveals important ramp up in adoption of low carbon fuels and cost-effective averted emissions
After greater than a decade of regular, modest progress in biofuels use, 2023 noticed a 25% surge in demand for clear fuels”
— Ian Thomson, ABFC PresidentVANCOUVER, CANADA, November 25, 2024 /EINPresswire.com/ — Superior Biofuels Canada (ABFC) introduced the discharge of the ninth annual Navius Analysis Biofuels in Canada (BIC) report, the annual quantitative report on Canada’s renewable and low-carbon gas markets.
The report’s highlights embrace:
– Biofuel consumption surged in 2023, with renewable diesel (RD) greater than doubling to 1.2 BL/yr, biodiesel consumption up 14% (530 ML/yr), and ethanol up 13% (4.0 BL/yr).
– Biofuel content material in gasoline was 9.44%, and 6.23% in diesel (up 10% and 68% from 2022, respectively).
– In 2023, biofuels had been answerable for 86% of Canada’s 2023 greenhouse fuel emission reductions from all clear transportation gas use, which totaled 11.4 million metric tonnes of local weather change gases.
– In 2023, ethanol had 55% decrease carbon emission than gasoline, and biomass-based diesel had 87% decrease emissions than diesel.
– Electrical energy consumption by light-duty autos grew by 56% in 2023, on prime of 41% progress in 2022.
– In 2023, biofuel mixing lowered wholesale gasoline prices by $0.055/litre and raised wholesale diesel prices by $0.051/litre.
Biofuel blended in gasoline (ethanol) decreased gasoline wholesale prices by virtually $1B in 2023. Since 2010, ethanol has decreased wholesale gasoline prices by $10.4B.
- Biofuels blended with diesel gas (renewable diesel and biodiesel) elevated diesel wholesale prices by $1.5B in 2023. Since 2010, biofuel in diesel has elevated wholesale diesel prices by $6.9B. (Higher use of decrease value biodiesel would have mitigated this premium.)
- Since 2010, biofuels use in Canada has decreased wholesale gas prices by $3.4B. Nonetheless, when biofuels are distributed on the retail stage, over-taxation ends in greater prices relative to gasoline and diesel.
- Taxing biofuel based mostly on quantity as a substitute of power content material has the impact of overtaxing biofuels. Have been biofuels taxed on power delivered, biofuels would have saved shoppers a complete of $2.5 billion, reasonably than costing them $2.2 billion since 2010.
- Canadians spent $115.1B on gasoline and diesel fuels in 2023. Biofuels mixing of 8.1% in gasoline and diesel (weighted common volumetric foundation) in 2023 added 1.0% to total gas buy prices. Had biofuels been taxed based mostly on power, prices would have elevated 0.5%.
Ian Thomson, ABFC President, stated :
After greater than a decade of regular, modest progress in biofuels use, 2023 noticed a 25% surge in demand for clear fuels
“The federal Clear Gas Rules (CFR) had been an enormous driver, aided by a 28% improve in biofuels use underneath BC’s Low Carbon Gas Normal and a 52% improve in Québec’s use because of the implementation of its new low carbon gas regulation in 2023. In these laws, biofuels are probably the most cost-effective option to scale back greenhouse fuel emissions, lowering gasoline prices on the pump and modestly rising a truck’s annual gas invoice.
Notably, the best progress in biofuel use occurred in diesel-class autos. Notably, there was 21% discount within the carbon depth of those biofuels, highlighting the clear gas sector’s potential to use improvements alongside the entire manufacturing worth chain. Total, the 2023 outcomes reveal how performance-based gas laws are successfully offering hundreds of thousands of Canadians with inexpensive, low-emission transportation.
Gas laws are very environment friendly and versatile, they usually create new jobs and value-add manufacturing throughout the availability chain – they’re proving their mettle within the battle to seek out local weather motion options which can be inexpensive and good for the Canadian financial system.
This aligns with findings from the Canada West Basis’s December 2020 evaluation,
With the CFR now in impact, the report additional clarifies the variations between a carbon tax and regulatory compliance credit. It highlights that “the gas worth influence of the CFR is over ten instances smaller than that of a carbon tax with an equal dollar-per-tonne CO2 worth.
“Biofuels are a extremely cost-effective—and in some instances, even cost-negative—software for lowering greenhouse fuel emissions. For instance, ethanol delivers a web profit (financial savings) of -$116 per tonne, which means it reduces each emissions and gas prices. Most Canadians already use ethanol-blended fuels seamlessly of their day by day lives, saving cash and chopping local weather emissions with each fill-up.”
The report additionally highlights the importance of over-taxation of biofuels in Canada. Gas taxes are utilized on a ‘per litre’ foundation, disproportionately rising the tax burden on lower-energy fuels, similar to ethanol and biodiesel. This volumetric taxation—spanning excise, motor gas, and carbon taxes—penalizes shoppers for utilizing low carbon biofuels. In 2023 alone, governments over-taxed Canadian shoppers by $560 million on account of volumetric reasonably than energy-based taxation. Since 2010, federal and provincial volume-based over-taxation of biofuels has added $4.7 billion to wholesale gas prices, contributing to a web $2.2 billion value for biofuel use over this era.
Ian Thomson, stated :
Biofuels are already saving most Canadians cash on the pump, however these financial savings could possibly be even higher with honest taxation.
“Conventional transportation fuels have been taxed on a per-litre (quantity) foundation for many years however, with the rising use of biofuels and different low carbon options, this method must evolve,”
“The BIC 2024 report concluded that if taxes had been charged on a ‘per unit of power’ foundation, biofuel consumption since 2010 would have saved shoppers $2.5 billion.
Superior biofuels are absolutely suitable with the hundreds of thousands of inside combustion engine autos that can nonetheless be on Canadian roads by 2050. Low carbon, non-fossil, sustainable liquid fuels—whether or not biobased or derived from renewable artificial platforms—are important to chopping emissions in light-duty autos and significantly in trucking, aviation, marine, rail, and different hard-to-decarbonize sectors. Producing these fuels domestically will maximize the usage of Canada’s power infrastructure, whereas fostering a strong and modern clear gas financial system.
As Canada continues its transition to a low-carbon financial system, superior biofuels and honest insurance policies are pivotal to attaining our local weather targets whereas supporting financial progress.
“By adopting performance-based laws, embracing innovation, providing honest taxation, and investing in sustainable gas options, we are able to ship significant financial savings to Canadians, scale back emissions throughout all sectors, and strengthen Canada’s place as a world chief in clear transportation fuels.”
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Biofuel Consumption Surges Following Implementation of Canada’s Clear Gas Rules: Biofuels in Canada 2024 report, supply
