ADVOCACY CORNER

CIPMA, along with industry partners, have been advocating to the Federal Government for funding for renewable fuel infrastructure at the retail outlets and terminals. These funds would be used to upgrade equipment to accommodate higher renewable fuel blends (think E15 – E25), in line with increasing government mandates and consumer demand for cleaner fuels.

Funding for the equipment needed to handle higher renewable fuel blends would greatly alleviate a significant hurdle for many independent retail outlets to offer this product.

Being a part of the ‘green economy’ narrative

Since the last federal election, an ongoing awkward tension has persisted between a government steadfast in its commitment to climate change and meeting net-zero by 2050 and the oil and gas sector seemingly perceived to be at odds with this goal.

But it doesn’t have to be that way. Politicians looking to make inroads in energy rich provinces will need to extend olive branches and companies looking to create new jobs for Canadians post-pandemic will need to play ball on advancing the sustainability agenda.

While practicality will likely win the day, fuel retailers need to speak to proof points that their paths to environmental sustainability are already well laid.

Retailers have a particular story to tell – as an essential service to Canadians during this pandemic, they have insights and lessons to share. They have adapted their business models in an ever-changing market while pursuing opportunities for greater innovation at fuel retail sites to help improve our industry’s environmental and sustainability impacts as our industry does its part to work towards net-zero by 2050.

The downstream sector has been responsive to the shift – they see the writing on the wall and understand that while consumer buying habits may not have shifted entirely in a new direction, their attitudes and desire to do so over time have. They have been willing contributors to the climate change discussion – engaging in the Federal Government’s Clean Fuel Standards development; aligning with provincial and territorial governments on biofuel blending; and introducing electronic vehicle charging stations at retail sites.

Retailers have an eye on the trends and understand the realities of the consumer market and what their habits might mean for clean growth business models of the future.

Research and Cross-Sector Collaboration

We’re at a point in time where we need more than lip service to carry this industry forward, and make sure it remains nimble, adaptive and iterative – much like the entrepreneurs who are at the helm of their organizations.

Opportunities to collaborate with cross-sector stakeholders on the future of the transportation sector is good business for retailers.

For our members and allied sector associations, being a part of the climate change solution means developing innovative, affordable, and reliable low-carbon clean energy retail options for consumers. That is why CIMPA is a founding partner of an organization that will launch later this year, called the Canadian Transportation Alliance (CTA).

This group will operate as an impartial and independent, not-for-profit organization, drawing on the expertise of a diverse member-base of ‘transportation’ related organizations from sectors including but not limited to, electric, renewable fuels, vehicle manufacturers, refining, hydrogen, academia, and Indigenous groups.

The CTA will commission third-party, innovative research on issues that will impact the sector for years to come. The goal of the alliance is simple — provide objective research on emerging issues so that decisions can be made soundly.

To have skin in the game, the downstream sector needs to show it’s looking towards an innovative future, not protecting the status-quo.

NEWS UPDATES

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GLOBAL

IRAQ TO LOWER OIL OUTPUT TO COMPENSATE FOR OPEC BREACH Iraq plans to cut oil output in January and February to make up for breaching its OPEC+ quota last year. OPEC’s second-biggest producer will pump around 3.6 million barrels daily for the two months EU BANK CHIEF SIGNALS PHASEOUT OF FOSSIL FUEL FINANCE The European Investment Bank provides limited support for gas under its current policy and intends to end all funding for fossil fuels before the end of the year. FRENCH OIL GIANT TOTAL LEAVES U.S ENERGY GROUP, MONTH AFTER EXITING CAPP French oil and gas company Total says it will ditch its membership in the U.S.-based American Petroleum Institute because it disagrees on climaterelated policies.The move follows its decision last July to drop out of the Calgary-based Canadian Association of Petroleum Producers and write off $9.3-billion worth of oilsands assets in Alberta.

UNITED STATES

PRESIDENT JOE BIDEN REVOKES PRESIDENTIAL PERMIT FOR KEYSTONE XL PIPELINE EXPANSION Signing an executive order hours after he was sworn into office, U.S. President Joe Biden revoked the pipeline permit granted by the former president in 2019. The order states that the decision came following a review which determined, “the proposed Keystone XL pipeline would not serve the U.S National interest.