The Government of Newfoundland and Labrador has significant concerns that the Government of Canada’s proposed clean fuel regulations, which come into effect on July 1, 2023, fail to address the province’s unique geography and economy and will disproportionately cause economic harm to Newfoundlanders and Labradorians and the Atlantic region as a whole.

Consequently, the Government of Newfoundland and Labrador is requesting that the Government of Canada delay implementation of the clean fuel regulations until a plan can be developed to address the disproportionate impact of the regulations on Atlantic Canadians, as expressed by the Council of Atlantic Premiers on May 25, 2023 and reiterated on June 12, 2023 and again on June 23, 2023.

The Honourable Siobhan Coady, Deputy Premier and Minister of Finance, and the Honourable Andrew Parsons, KC, Minister of Industry, Energy, and Technology, will be available to discuss this issue with media outside the House of Assembly today (Wednesday, June 28) at 3:30 p.m.

The Provincial Government is calling on the Government of Canada to provide clarity as to how the clean fuel regulations will impact the price of gasoline and diesel. The Parliamentary Budget Officer has found that these regulations will result in increased costs for Newfoundlanders and Labradorians by up to 17 cents per litre for gasoline and 16 cents per litre for diesel by 2030. This is on top of the federal carbon tax imposed on a number of products including gasoline, diesel, and home heating fuel.

While the Provincial Government is aligned with the Government of Canada’s commitment to mitigating the impacts of climate change and becoming net-zero carbon emitting by 2050, imposing clean fuel regulations will further burden residents and businesses experiencing the pressures of a higher cost of living. These regulations will require suppliers to lower the carbon intensity of gasoline and diesel fuels, resulting in increased costs for consumers.

The fundamental issues in Newfoundland and Labrador include its geography and associated logistical challenges, energy security constraints, and limited transportation options. When the current renewable fuels regulations came into force (now being replaced by the clean fuel regulations), the Government of Canada acknowledged the province’s unique situation and exempted it from those regulations. The reasons for this original exemption have not changed.

The Government of Newfoundland and Labrador has addressed its concerns repeatedly with the Government of Canada.

Information regarding the Government of Canada’s clean fuel regulations, established under the Canadian Environmental Protection Act, 1999, are available here.

The Government of Newfoundland and Labrador is committed to addressing climate change, and has implemented a number of climate change initiatives to lower greenhouse gas emissions, as outlined in the backgrounder below.

Quotes
“While the Government of Newfoundland and Labrador continues to support measures and progress toward net zero carbon emissions, we are concerned with the cumulative cost impacts and investment uncertainty associated with introducing multiple federal regulations and measures at the same time. Marine Atlantic, for example, could see an impact of up to $8 million a year in additional costs resulting from the implementation of both carbon tax and clean fuel regulations, which will result in increased costs for customers and commercial traffic.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology

“The Government of Newfoundland and Labrador continues to have significant concerns that the federally-imposed clean fuel regulations do not sufficiently address the unique economic and geographic situation of our province, and could cause significant economic harm to Newfoundland and Labrador. We have provided numerous written and verbal submissions to Environment and Climate Change Canada explaining our concerns. To date, there continues to be no adequate response to the issues raised.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance

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Learn more
Atlantic Premiers Call for Delay of Implementation of Federal Clean Fuel Regulationx

PBO estimates the impact of the Clean Fuel Regulations on households

Government of Canada – Clean Fuel Regulations

Government of Canada – Renewable Fuels Regulations

Government of Canada Fuel Charge Rates – Greenhouse Gas Pollution Pricing Act

Provincial Government Disappointed with Federal Carbon Tax Backstop

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BACKGROUNDER

Government of Newfoundland and Labrador Climate Change Initiatives

The Government of Newfoundland and Labrador continues to advance its Climate Change Action Plan.

The most recent greenhouse gas emissions for 2021 are 8.3 megatonnes – a 13 per cent decrease from 2020 and the second lowest level of emissions since 1992.

This positions the province on a course to achieve its net zero and emission reduction commitments.

Through energy efficiency and fuel switching programs, the Provincial Government anticipates reducing greenhouse gas emissions by a further 615,000 tonnes by 2030.

Listed below are more of the province’s climate change initiatives:

• Invested more than $13 billion in Muskrat Falls, which will result in an electricity system that will be greater than 98 per cent carbon free;
• Advancing a Renewable Energy Plan that supports the local, national, and global transition to clean energy;
• Created laws and performance standards for larger emitters of greenhouse gas emissions on land and offshore;
• Bringing clean energy to public and private sector buildings;
• Reducing waste;
• Increasing access to electric vehicles;
• Helping homeowners become more energy efficient;
• Helping homeowners transition from oil to clean electricity for heating;
• Helping businesses, municipalities, and industry transition from oil to clean electricity for heating and processing; and
• Investing directly in businesses and organizations that support a green economy.