The Conservative government is hoping it has won enough support from European Union countries to stymie, for now, a fuel quality standard proposed by the EU's executive that would label oilsands a dirtier form of crude.
EU officials are expected to vote Feb. 23 on a draft law that would slap a higher carbon-emissions value on bitumen-derived fuels, compared to more conventional crudes. As the vote draws near, a group of eight Nobel Peace laureates urged heads of state on Thursday to adopt the fuel standard "to keep highly polluting tarsands oil out of Europe."
Countries on both sides of the debate expect the vote at the fuel quality committee will be close, although observers doubt the European Commission's proposal will receive enough support from the 27 EU member states to outright pass it or quash it.
If there's no "qualified majority" at the committee - requiring 255 votes out of a total 345 - then the matter will go to a larger council of ministers of the EU for a vote that could possibly take place by June.
Ottawa and the petroleum sector have engaged in an intensive lobbying campaign in recent months to convince EU member countries to side with Canada's position that the proposed Fuel Quality Directive discriminates against the oilsands.
The federal government fears the draft law could establish a dangerous dirty oil precedent, severely damage the oilsands industry's worldwide reputation and close future export markets.
Federal Natural Resources Minister Joe Oliver said Thursday he can't predict the results, but believes the federal government's message is resonating with EU members and that Canada could achieve a victory of sorts in the short term if the FQD falls short of the qualified majority at committee.
"There is more support. Fundamentally, it's because other countries understand it's a non-scientific and, for us, discriminatory approach that would single out the oilsands," Oliver said in an interview with Post-media News.
France is the latest country to oppose the draft FQD, the minister noted, while Britain has already sided with Canada on the matter. Other countries including Spain, Estonia and possibly Poland also support Canada's position, government documents have previously indicated. "We don't want to have our oil stigmatized so it can have an impact on our ability to sell to other markets," he added.
Canada's oilsands, located largely in northern Alberta, are the third-largest proven oil reserves in the world - next to Saudi Arabia and Venezuela. The resource is home to approximately 170 billion of the estimated 175 billion barrels of total oil reserves found in Canada.
Canadian officials argue the pro-posed fuel standard unfairly singles out the resource as having higher carbon emissions without any sound scientific studies examining the greenhouse gases from conventional oil the EU actually imports.
Almost all of Canada's oilsands exports are sent to the U.S. and virtually no bitumen-derived fuels are currently shipped to Europe. "Europe has been grandstanding. It's easy to take a stand against something you don't import," Oliver added.
However, EU officials maintain the FQD - which would also affect Venezuelan oilsands - is "clearly science-based" and helps the member countries meet their international obligations under the World Trade Organization.
The European Commission has recommended oilsands-derived fuel be given a greenhouse gas rating of 107 grams per megajoule, 22 per cent higher than the 87.5 grams assigned to fuel from conventional crude oil.
Original Article
Source: edmonton journal
Author: Jason Fekete
EU officials are expected to vote Feb. 23 on a draft law that would slap a higher carbon-emissions value on bitumen-derived fuels, compared to more conventional crudes. As the vote draws near, a group of eight Nobel Peace laureates urged heads of state on Thursday to adopt the fuel standard "to keep highly polluting tarsands oil out of Europe."
Countries on both sides of the debate expect the vote at the fuel quality committee will be close, although observers doubt the European Commission's proposal will receive enough support from the 27 EU member states to outright pass it or quash it.
If there's no "qualified majority" at the committee - requiring 255 votes out of a total 345 - then the matter will go to a larger council of ministers of the EU for a vote that could possibly take place by June.
Ottawa and the petroleum sector have engaged in an intensive lobbying campaign in recent months to convince EU member countries to side with Canada's position that the proposed Fuel Quality Directive discriminates against the oilsands.
The federal government fears the draft law could establish a dangerous dirty oil precedent, severely damage the oilsands industry's worldwide reputation and close future export markets.
Federal Natural Resources Minister Joe Oliver said Thursday he can't predict the results, but believes the federal government's message is resonating with EU members and that Canada could achieve a victory of sorts in the short term if the FQD falls short of the qualified majority at committee.
"There is more support. Fundamentally, it's because other countries understand it's a non-scientific and, for us, discriminatory approach that would single out the oilsands," Oliver said in an interview with Post-media News.
France is the latest country to oppose the draft FQD, the minister noted, while Britain has already sided with Canada on the matter. Other countries including Spain, Estonia and possibly Poland also support Canada's position, government documents have previously indicated. "We don't want to have our oil stigmatized so it can have an impact on our ability to sell to other markets," he added.
Canada's oilsands, located largely in northern Alberta, are the third-largest proven oil reserves in the world - next to Saudi Arabia and Venezuela. The resource is home to approximately 170 billion of the estimated 175 billion barrels of total oil reserves found in Canada.
Canadian officials argue the pro-posed fuel standard unfairly singles out the resource as having higher carbon emissions without any sound scientific studies examining the greenhouse gases from conventional oil the EU actually imports.
Almost all of Canada's oilsands exports are sent to the U.S. and virtually no bitumen-derived fuels are currently shipped to Europe. "Europe has been grandstanding. It's easy to take a stand against something you don't import," Oliver added.
However, EU officials maintain the FQD - which would also affect Venezuelan oilsands - is "clearly science-based" and helps the member countries meet their international obligations under the World Trade Organization.
The European Commission has recommended oilsands-derived fuel be given a greenhouse gas rating of 107 grams per megajoule, 22 per cent higher than the 87.5 grams assigned to fuel from conventional crude oil.
Original Article
Source: edmonton journal
Author: Jason Fekete
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