Climate Change Newsletter: issue 4 — Canada: the EU Fuel Quality Directive — signalling a change of course
By Peter Burn
Recently, the European Union released its 2030 Framework for Climate and Energy. Buried in the details was an indication that the EU is rethinking its proposed Fuel Quality Directive (FQD) — a regulation with the stated objective of reducing the carbon intensity of European motor fuel in 2020 by six per cent relative to 2010 levels. This is welcome news for Canada and, ironically, for the European environment (although not for European environmentalists), since the current FQD proposal contains some major flaws.
First, the FQD is contrary to EU international trade obligations, as well as the UN Climate Change Convention principle that ‘measures should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade’. Most notably, there is no justification for the decision to assign two emissions values for diesel fuel and gasoline — one for fuel made from conventionally produced crudes and a second higher score for fuel made from ‘natural bitumen feedstock source’.
A second major problem is that the FQD won’t achieve its stated 2020 objective. As a result of flawed data and methodology, literally all imported conventional crudes (80 per cent of EU consumption) will enter the EU market with an assigned value that is substantially lower than their actual emissions, particularly those crudes produced with significant gas flaring. As the level of crude imports rises (to replace rapidly depleting ‘cleaner’ North Sea oil), the FQD will show no increase in carbon intensity for statistical purposes, even as it continues to rise in fact. Meanwhile, global greenhouse gas emissions will rise due to higher transportation emissions worldwide caused by ‘market shuffling’…
Click on the link below to read the rest of the Dentons briefing.
News from Dentons
News from The Lawyer
Briefings from Dentons
The Ontario government says that it is acting on the early results of the Mining Sector Health, Safety and Prevention Review.
‘Inversion’ transactions are nothing new, and the current proceedings appear to be just another replay of earlier games of tag between the government and US multinationals.
Analysis from The Lawyer
The continent’s boom in natural resources and renewable energy is sparking an infrastructure drive
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.