Calgary Herald

EU fuel directive flawed: study

Canada-funded report says it targets oilsand

- DAN HEALING DHEALING@CALGARYHER­ALD.COM

A report paid for by the federal and Alberta government­s supports their view that the proposed European Union fuel quality directive unfairly singles out Canada’s oilsands for discrimina­tory treatment.

The study by ICF Internatio­nal being released Wednesday morning is to be used as ammunition by Natural Resources Minister Joe Oliver in an upcoming European trip to argue the directive should be rewritten.

“The FQD groups almost all crudes currently used in the EU in the ‘convention­al’ category, regardless of GHG intensity, and arbitraril­y places Canadian oilsands into a separate stand-alone category with a higher, discrimina­tory GHG intensity value,” reads an executive summary of the report by ICF Internatio­nal being released Wednesday morning.

In an accompanyi­ng statement, Oliver said the study proves that the proposed directive’s implementa­tion measures are “unscientif­ic and discrimina­tory” and would “discourage disclosure, harm the European refinery industry and not achieve its environmen­tal objective.”

He said ICF Internatio­nal is one of the European Commission’s own expert consultant­s.

Ministry officials said the study cost $170,755, of which $50,000 was contribute­d by Alberta.

Oliver said last week EU environmen­t ministers could take the fuel quality directive to a vote early as mid-December but it could also potentiall­y be delayed until 2014.

The Harper government commission­ed the independen­t assessment designed to analyze the carbon content of European fuels earlier this year.

The directive aims to reduce the EU’s greenhouse gas emissions from fuel by six per cent by 2020, compared to 2010 levels.

It puts crude into three categories according to greenhouse gas emission intensity — convention­al, oil shale and oilsands natural bitumen.

The study concludes that oilsands-derived crude in many cases produces the same or less emissions than some of the crudes in the convention­al category, such as heavy and light crudes with significan­t flaring and venting produced in countries such as Venezuela, Iraq, Nigeria and Russia.

“By singling out the oilsands and arbitraril­y assigning a higher GHG emissions value, the FQD would discrimina­te against Canada by discouragi­ng EU refiners and consumers from using Canadian crude oil and products, thereby negatively impacting Canada’s energy sector and disadvanta­ging European industry,” it says.

The report calls for the directive to be rewritten, warning that it could actually lead to higher greenhouse gas emissions by increasing the distance oil is transporte­d to market.

It recommends that the directive implementi­ng measures consider the emissions intensity of each crude oil imported into Europe individual­ly, according to their range of GHG intensitie­s.

It says the “convention­al” default value is too low and based on out-of-date data with flaws such as relying on voluntary rather than mandatory reporting.

It suggests the data underestim­ates how much greenhouse gas is emitted in countries with oil production but limited gas gathering, leading to higher venting and flaring rates.

ICF Internatio­nal says that if the convention­al crudes were accurately estimated, their default value would be 10 per cent higher and that would place the value of oilsands at about 10 per cent higher than the top of the convention­al ranges, rather than 22 per cent higher as it is in the proposal.

Oliver met with the United Kingdom’s secretary of state for energy and climate change, Edward Davey, in Washington last week.

 ?? Manuel Balce Ceneta/the Associated Press/files ?? Canada’s Minister of Natural Resources Joe Oliver, shown in Washington in September, says that a study by ICF Internatio­nal supports the government’s view that the European Union fuel quality directive is discrimina­tory.
Manuel Balce Ceneta/the Associated Press/files Canada’s Minister of Natural Resources Joe Oliver, shown in Washington in September, says that a study by ICF Internatio­nal supports the government’s view that the European Union fuel quality directive is discrimina­tory.

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