Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Canadian Fuels Association (CFA) appears to have both positive and negative positions on climate change policy in Canada in 2022-2024. The CFA has engaged with the Canadian Clean Fuel Regulations, promoting the policy as a way to lower the emissions of liquid fuels, and advocating for government tax breaks for low-carbon liquid fuels.
Top-line Messaging on Climate Policy: The Canadian Fuels Association appears to have limited top-line positioning on climate change. The CFA supported achieving a net-zero economy by 2050 in its December 2023 Fueling Change Report, but did not appear to support government intervention to address climate change beyond the Canadian Clean Fuel Regulations in the same report. Furthermore, the CFA does not appear to have taken a position on the Paris Climate Agreement since a statement in its original Driving to 2050 report, released in 2020.
Engagement with Climate-Related Regulations: The CFA expressed extensive support for increased production of biofuels in Canada. In an October 2023 brief to the federal government in advance of the 2023 Bbudget, the CFA advocated for a tax credit equivalent to that of the US Inflation Reduction Act for biofuel producers. In April 2024 posts social media posts, the CFA also advocated for increased investment in the 2024 Budget for the Clean Fuels Regulations, and in its January 2024 Alberta lobbying disclosure CFA appeared to condition support for the Cleancon “maintaining a positive investment climate for biofuels”. In a July 2022 briefing for the Canadian Clean Fuels Regulation Standing Committee on Natural Resources, the group advocated for the introduction of a tax credit specifically for biofuel producers but did not appear to take a position on climate safeguards to ensure biofuels have significant emissions reductions. In July 2023, the Narwhal reported that the Canadian Fuels Association appeared to oppose any components of Canada’s oil and gas emissions cap that might reduce the production of oil.
Positioning on Energy Transition: In 2022-24, CFA advocated for a wide range of fuel sources, and appeared to support a long term role for internal combustion engines powered by liquid fuels. In the Canadian Fuels Association’s most recent Fueling Change report, released in December 2023, the company advocated for increased use of renewable diesel, ethanol, hydrogen, and electricity, but did not place clear environmental conditions on the manufacturing of these fuels. Similarly, the report advocated for increased use of Carbon Capture Utilization and Storage without clear conditions on the phase-out of fossil fuels. Bob Larocque, CEO of the Canadian Fuels Association, supported Canadian investment in biofuels in multiple statements, including in April 2024 and March 2024. The CFA appeared to advocate for low-carbon liquid fuels as a route to decarbonize road transport as opposed to electrification in a February 2023 post on social media.