Evidence of meeting #140 for Environment and Sustainable Development in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was fuel.
A recording is available from Parliament.
5:10 p.m.
Abbotsford, CPC
Okay.
The last question is going back to the low-carbon fuel that you talked about, Massimo. You mentioned that there was a lack of political will to get that goal done. Can you tell me how that lack of political will has manifested itself and what we can do to address it?
5:10 p.m.
President and Chief Executive Officer, National Airlines Council of Canada
There's a lot of work going on in Natural Resources Canada, Environment and Climate Change Canada, and Transport Canada is participating. There is a sense that there are very tight deadlines that need to be met to develop standards.
Incentivizing the commercialization of biojet is a complex...is a hard nut to crack. What we're seeing is an approach by officials, at this point, to impose performance standards upon our sector that are completely divorced from the market reality and the cost implications. That's not the way to do it. That's not the way you're going to achieve the kind of leadership potential that Canada actually has in this field. That's not the way you're going to help our industry achieve and surpass its goals with respect to carbon reduction.
5:15 p.m.
Mr. John Aldag (Cloverdale—Langley City, Lib.)
That's the end of the time.
Wayne, you have three minutes.
5:15 p.m.
Kootenay—Columbia, NDP
Thank you, Mr. Chair.
My question is for the Canadian Fuels Association.
What improvements can the Canadian Fuels Association make to decrease greenhouse gases? If you want to touch on ethanol, which we've heard testimony on previously, I would be interested in hearing about that. What improvements can you make to reduce GHGs?
5:15 p.m.
President and Chief Executive Officer, Canadian Fuels Association
Certainly as we look at it in the context of the clean fuels standard in particular in terms of the work we've done with Environment and Climate Change Canada and identifying compliance pathways, continuous improvements in reducing energy consumption and improving energy efficiency in refineries will ultimately reduce the carbon intensity of the fuel we produce. Opportunities that do align with some of the limited opportunities around the output-based pricing system will, again, assist in reducing the carbon intensity of the fuel we produce. Certainly, blending biofuels, biocomponents, whether that's renewable diesel or whether it's ethanol, presents other compliance opportunities, but they come at a cost.
The challenge we have with regulatory mechanisms like the clean fuel standard or renewable fuel standards is that they are not particularly transparent with respect to the costs. We don't see how this is the price of carbon and how that translates to the price of a litre of fuel.
We've seen many studies in Canada done by independent think tanks over the last number of years that point to a very high price on cost per tonne mitigated of renewable fuel blending, in the hundreds of dollars per tonne, which aren't transparent to the average citizen, and, hence, don't influence their ability to make decisions.
Certainly, it's a compliance pathway. It's work we're doing already. The ethanol blending level in Canada today probably averages better than 7% through various renewable fuel band-aids, but it's an expensive cost per tonne of GHG mitigation measure.
5:15 p.m.
Kootenay—Columbia, NDP
Thank you.
Just because I'm curious, does ethanol have a role in the future of jet fuel?
5:15 p.m.
Director, Fuel and Environment, WestJet, Environment Committee, National Airlines Council of Canada
There is a process whereby you can convert alcohol to jet, so it's a potential pathway.
5:15 p.m.
Director, Fuel and Environment, WestJet, Environment Committee, National Airlines Council of Canada
It has been approved under our international standard or specifications board. Some technologies have just started to appear in order to be able to do it well.
5:15 p.m.
Kootenay—Columbia, NDP
Maybe I will talk to you after. My constituents would love to know how come every gas station in Cranbrook is at the same price all the time. They all go up the same and they go down the same, but we can talk about that after.
5:15 p.m.
President and Chief Executive Officer, Canadian Fuels Association
That's what's called a competitive market.
5:15 p.m.
Mr. John Aldag (Cloverdale—Langley City, Lib.)
As we wrap up this one, I would like to thank all the witnesses for coming today. I think it has been a good discussion.
With that, we're going to suspend for a few minutes. I do need to clear the room, except for the members and staff. We have 10 minutes of in camera business we need to get to.
With that, we will suspend. Thank you for joining us.
[Proceedings continue in camera]