Ottawa Releases a “Second Carbon Tax” to Cut Vehicle Emissions – Energy News for the Canadian Oil & Gas Industry |

Move sets up a potential clash with the country’s hydrocarbon producing provinces

The regulations announced Tuesday will go into effect next year to avoid any immediate impact on fuel prices, Steven Guilbeault, minister of environment and climate change said by phone. They will require the carbon intensity of gasoline and diesel to be reduced by about 11 per cent between 2023 and 2030.That will add an estimated 6 cents to 13 cents per litre to the cost of gasoline by 2030, said the minister. That price increase will be much less than the rise in profits earned by refiners, which have gone up more than 100 per cent in the past year, he said.“Oil companies have a lot of money now and they should be investing some of it to ensure they reduce their greenhouse gas emissions,” he said.

About 2.2 billion litres of additional low-carbon diesel and 700 million litres of additional ethanol will be needed in 2030 under the new program, the ministry said.

Source link