OTTAWA (August 8, 2019) — CME recently released a submission on the Clean Fuel Standards (CFS) highlighting significant concerns in response to the latest draft of the regulation.
“All Canadians, including the industrial sector, have a responsibility to do what we can to address climate change. We fully agree with the government’s view that a balance must be struck between the environment and the economy. We are, however, concerned that the CFS as currently proposed miss the mark,” said Dennis Darby, President & CEO of Canadian Manufacturers & Exporters. “The CFS will put manufacturers at a competitive disadvantage and restrict the sector’s ability to grow and attract new investments to Canada. Our energy costs are amongst the highest in North America and CME estimates that CFS could cost our members an additional $200.00 per tonne, a 50% to 110% increase in market price, further chipping away at businesses competitiveness.”
“Canadian manufacturers are global leaders in producing goods at low levels of emissions intensity. For example, Canada’s steel industry has a carbon footprint 2-4 times lower than its international competitors. This is because Canadian steel manufacturers use non-emitting sources of energy like hydro-electricity and have invested in the latest production technologies,” added Darby. “We call on the government to pause and reconsider the CFS or exempt the manufacturing sector to prevent negatively impacting manufacturing operations, equipment and processes across Canada.”
The Clean Fuel Standards draft regulations are proposing that all fuels should go through a process for carbon removal and establishing new emissions intensity requirements on fuels used in transportation, buildings and industry. Manufacturers’ other concerns about CFS include:
- The 30 MT GHG emissions reduction target is potentially unrealistic considering the targets and timelines laid out in the proposal.
- Competing environmental federal or provincial policies such as the carbon tax could potentially lead to duplication and more red tape for manufacturers.
ABOUT CANADIAN MANUFACTURERS & EXPORTERS
Canadian Manufacturers & Exporters (CME) advocates for and represents 2,500 leading manufacturers that operate across Canada. Manufacturing moves Canada and is the engine of the economy. Canadian manufacturers collectively employ 1.7 million Canadians and is responsible for two-thirds of Canada’s export sales. The sector is growing rapidly. In 2018, the sector reached a new all-time high of $685 billion in sales. CME advocates policies that will allow Canadian manufacturers to compete effectively in the global economy.
FOR MORE INFORMATION
Director of Communications
Canadian Manufacturers & Exporters
C: 613-292-6070 | email@example.com | @CME_MEC