Feds Aware of Affordability ‘Concerns’ Surrounding New Clean Fuel Regulations: Minister

Minister of Intergovernmental Affairs, Infrastructure, and Communities Dominic LeBlanc rises during Question Period in the House of Commons on Parliament Hill in Ottawa on March 27, 2023. Justin Tang/The Canadian Press

Federal Minister of Intergovernmental Affairs Dominic LeBlanc says that Ottawa is aware of affordability “concerns” surrounding the Liberal government’s recently introduced Clean Fuel Regulations (CFR) and that the government is seeking ways to address them.

“We did hear from the premiers but we also hear from Atlantic Canadians [about] concerns around affordability,” Mr. LeBlanc told reporters during a press conference in Moncton, New Brunswick, on July 18, following a meeting of the Atlantic Growth Strategy Leadership Committee.

“This is a national and I would argue international challenge,” he said. “But there are unique challenges in our region.”

Mr. LeBlanc added that he and a number of other federal cabinet ministers have discussed the issue with Atlantic premiers and said the federal government has put in place a number of measures intended to “return money directly to Canadians” that they may lose due to increased costs resulting from the new CFR.

“We’re always interested in hearing ways that the national government can address affordability issues broadly in the region,” Mr. LeBlanc said, having remarked earlier that Ottawa understands that the “burden of these measures needs to be shared in a way that is appropriate in terms of those most affected.”

The federal government’s new CFR, which came into effect on July 1, sets new standards for Canada’s primary fuel suppliers, requiring them to reduce the carbon intensity of the gasoline and diesel they produce and sell in Canada.

The fuel standards will increase every year until they reach full stringency in 2030, aiming to gradually lower the carbon intensity limit of all gasoline and diesel used in Canada over time.

Debate

Parliamentary Budget Officer (PBO) Yves Giroux said in a report published in May that the CFR will increase the price of gas by up to 17 cents per litre and diesel up to 16 cents by 2030.

Mr. Giroux also estimated that the CFR will decrease Canada’s real GDP by up to 0.3 percent, or up to $9 billion, by 2030.

Environment Minister Steven Guilbeault took issue with the PBO’s report, calling it a “very partial analysis.”

The premiers of Canada’s Atlantic provinces have previously spoken out against the CFR and in a joint statement on May 25, called on the federal government to delay implementation. The premiers said the new regulations will lead to even higher fuel price inflation than that which already exists.

“These increases will further add to inflationary pressures that will increase the costs of other goods imported to the region,” the letter said.