Biofuels in Canada 2020 Report

Topline

• Fourth annual independent report with robust, comprehensive biofuel and emission reduction data and analyses up to 2018
• Results and data are published as ‘open source’ references to provide full access to data sources and methodology
• New this year:
  • estimated results for 2019
  • a methodology to compare carbon taxes and compliance credits
  • an assessment of clean fuel abatement costs from the perspective of fuel suppliers
• The report quantifies the volumes of renewable transportation fuels consumed in each Canadian province, by fuel type, feedstock, and carbon intensity
• The report explains the distinction between CFS compliance credit market prices and carbon pricing
• The report highlights the disproportionate tax burden on biofuels

Detail

Report’s highlights:

• Annual avoided lifecycle GHG emissions resulting from biofuel consumption reached a record 5.6 million tonnes in 2018
• Ethanol use in gasoline was 3,034 million litres in 2018 (6.5% of the gasoline pool). Biomass-based diesel use in the diesel pool was 711 million litres (2.5% of diesel fuel)
• Using actual fuel market prices, biofuel consumption reduced fuel expenditures in Canada by 0.8% from 2010 to 2018, relative to a counterfactual scenario of no biofuel blending
• The biofuels cost impact is equivalent to an average $27/year savings for an average gasoline consumer (i.e. car/pickup), or an additional cost of $206/year for an archetypal diesel user (i.e. freight truck), adding 0.6% to overall diesel fuel costs
• Biofuels abatement costs were negative $322/t (i.e. savings) in the gasoline pool and $144/t in the diesel pool, before consideration of external benefits (reduced pollution, health care costs, etc.)
• In the 2010-2018 period, biofuel producers supplying the BC LCFS market reduced the carbon intensity (CI) of ethanol by 45%, biodiesel by 83%, and HDRD by 58%.
• A common, incorrect assumption in policy analyses is detailed: that credit market prices are the equivalent of a carbon price
• The report also notes that credit prices represent the highest marginal cost of compliance.
• The report highlights the disproportionate tax burden on biofuels when compared to petroleum fuels (gasoline, diesel) or other clean fuels. Volumetric fuel taxes (e.g., excise, carbon) on biofuels have increased fuel costs for consumers and created windfall tax revenues for governments of over $1.6 billion since 2010.

Download Biofuels in Canada 2020 Report [PDF]

Download Biofuels in Canada Analysis 2020 [Excel/xlsx]

The Biofuels in Canada 2020 report was commissioned by Advanced Biofuels Canada from Navius Research. It is also available on the Navius Research website.