Guest Opinion: Trudeau’s ‘clean fuel standard’ will likely do more harm than good


The Trudeau government’s proposed “clean fuel standard” (CFS) aims to reduce annual greenhouse gas (GHG) emissions from fuels by 30 megatonnes by the year 2030. According to the government’s website, the plan is “complementary to other climate policies… including carbon-pollution pricing.” But in reality, the CFS undermines the case for a carbon tax. And the implied “price” of avoided emissions is far higher than standard research recommends. The Trudeau government’s proposed clean fuel standard is the most aggressive of its kind, being the first in the world to apply to all fuels, not just liquid. However, its implicit tax rate of $200 per tonne is quadruple the ceiling of the federal carbon tax, and far exceeds standard estimates of the social cost of carbon.

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