We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Canadian Fuels Association (CFA) appears to have a mostly negative position surrounding climate lobbying. Its top-line messaging on climate policy appears to be mixed, however it appears to be resistant to climate change regulations and the energy transition.
Top-line Messaging on Climate Policy: The CFA appears to have a mixed stance on climate policy in its top-line messaging. Although the association appears to recognize the need to reduce the sectors emissions and acknowledged Canada’s commitment to reach net-zero emissions by 2050, it did not appear to give a clear position although CFA CEO Peter Boag reportedly stated that ‘is working with-in the context of Canada’s long-term net-zero aspirations’ in a 2020 article. The CFA also appear to accept that there is a need for climate change regulations, however it appears that this acceptance comes with major caveats such as ‘respecting technology-neutral solutions and not create unnecessary regulatory hurdles’. Nevertheless, the CFA appeared to state support for the Paris Agreement in its ‘driving to 2050’ industry paper in 2020.
Engagement with Climate-Related Regulations: The CFA appears to be resistant to most climate-related regulations. In January 2019, Boag gave evidence to the Standing Committee on Environment and Sustainable Development regarding carbon taxation, where he stated support for general carbon pricing appears to be advocating to policymakers to oppose carbon tax, stating the 20% reduction target is unachievable, and a tax would reduce investments in low emission technology, lead to carbon leakage and would threaten closures of refineries. In a 2019 industry paper, Boag also appeared to not support policies such as renewable fuels mandates, low-carbon fuels standards or ‘forced electrification’, citing cost concerns with such policies. Although the CFA appears to support the Canadian Fuels Standard (CFS), it also appears that this support also comes with caveats such as increased investments and regulatory certainty as well as at the lowest possible cost. A 2019 industry paper appeared to be less supportive about the policy, stating the policy would drive the cost of fuel and doubted the future of EV’s, stating that a CFS that also drives investment in ‘cleaner Canadian petroleum fuels while at the same time strives to keep compliance costs as low as possible, aligns well with the goals of Canadians.’
Positioning on Energy Transition: CFA’s messaging surrounding the energy transition appears to be negative. In its 2020 industry paper, ‘driving to 2050’ it acknowledges that a transformation in the transportation energy system is necessary but also highlights the role liquid fuels will play in that transformation, stating that gasoline, diesel and aviation fuels ‘will be around for many years to come’. In a 2021 press release, the association appeared to support the increased role of hydrogen in a future energy mix but with the caveat that blue and grey hydrogen should also be utilized, stating that ‘a focus on “color” vs carbon intensity could stifle innovation and infrastructure investments critical to unlocking the emissions' reduction potential of all forms of hydrogen.’
In an August 2022 Twitter post, CFA thanked the Canadian Government for their support of the Enbridge oil pipeline and stated the pipeline is “vital to North America’s energy security”. Furthermore, in an April 2022 submission to the ENVI committee, CFA supported phasing out ‘inefficient’ fossil fuel subsidies if it excluded subsidies for “clean energy, renewables, and technologies that dramatically reduce greenhouse gas emissions”.