OTTAWA, DDTCNews – The Canadian government is setting new emission standards for gasoline and diesel, while offering a tax credit of up to 50% to oil companies.
The final rules for the Clean Fuel Standards have been approved by the Canadian Cabinet. With the enactment of the regulations, oil companies can now benefit from a 50% tax credit.
“Cabinet last week approved the final rules for clean fuel standards,” reported The Canadian Press. thestar.comWednesday (6/29/2022).
Under these regulations, the oil company that installs the system carbon capture and storage (CCS) can obtain tax incentives from the central or federal government up to 50% of project costs.
In addition to installing CCS, companies are also required to demonstrate success in reducing fuel lifecycle emissions through various activities, including purchasing credits from other companies.
Credit can take the form of building electric vehicle charging stations, replacing coal or natural gas power plants with renewable electricity sources, producing and distributing biogas or investing in clean technologies.
However, the settlement’s implementation drew criticism from Greenpeace Canada’s senior energy strategist, Keith Stewart. According to him, the relief will only reduce the financial burden on oil companies, but will not reduce additional emissions.
“There is no rational way for anyone to get a credit for clean fuel standards and a 50% tax credit and be able to offset it on royalties as oil companies earn more money,” he said.
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