Last year marked significant milestones in Canadian and American renewable fuels policy: Canada fully implemented its Clean Fuel Regulations (CFR), and the U.S. celebrated the first year of the Inflation Reduction Act. Although these policies operate in different contexts and countries, both aim to promote cleaner fuels for their environmental and economic benefits, relying on life cycle carbon assessment (LCA) to do so.LCA is a key tool for investors and companies to decide where to put their money. Correctly executed, LCA captures a product’s total carbon emissions at every stage, requiring rigorous science and quality data. However, regulatory and political pressures can lead to oversimplification, which reduces accuracy, undermines producers, and jeopardizes investment and growth.Sound economic policies can free up capital in the same way that fuel LCA models can serve as either a springboard or a hurdle for investors. As we continue to navigate these waters, here are some key considerations for Canadian and U.S. lawmakers regarding their LCA models and approaches, and why LCA integrity should be a priority.Data Availability and Quality: LCA models are only as good as their data. For this reason, LCA must incorporate data sets that balance regional and national data and acknowledge optimization of production processes at ethanol facilities. Without this, the true value of capital investments in energy efficiency and clean technologies cannot be fully appreciated, and investment risks in clean technologies will not be properly mitigated.Sound Science and Methodology: Corn ethanol can achieve very low and even negative carbon intensity with existing technologies. Fair LCA modeling is crucial because models that ignore or undercut carbon reductions from technology, like modern farming and carbon capture and storage, weaken policy performance and discourage investment.Crop and Geographical Diversity: Different crops have diverse environmental impacts that significantly influence LCA results. Unfortunately, some special interest groups advocate for incorrect land-use changes, opposing the inclusion of crop-based biofuels in clean fuel investment, production tax credits and sustainable aviation fuel incentive programs. Therefore, it’s crucial to ensure that LCA models maintain their scientific integrity and accurately reflect the sustainability of biomass feedstocks.Transparency and Expertise: LCA models need clear guidelines in legislation and must use the latest information on biofuels and inputs. Agencies and engineers have carefully developed trusted LCA models like GREET and GHGenius over many years. When new LCA models are introduced (e.g., the Canadian CFR), it's vital to involve industry experts with real-world experience. Without this collaboration, there’s a risk of incorrect emissions calculations, leading to policy errors, lost investment opportunities, and hindered domestic low-carbon fuel production.Harmonized Policies: Ethanol policy between Canada and the United States is a cornerstone for energy security. By emphasizing science-based assessments in LCA on both sides of the border, coordinated policy ensures that investors and consumers know that biofuels are produced and consumed in an economically advantageous and environmentally responsible manner, regardless of their end-use destination.As the evolution of low-carbon policies in Canada and the United States underscores, the ethanol industry must stay at the forefront of LCA modeling to ensure clear market signals and unleash the full economic potential of these game-changing policies. The task of fine-tuning the details is intricate, but no one is better equipped than us—the trailblazers of "well-to-wheel" economics and the seasoned experts of the “farm-to-pump” life cycle—to tackle it.&nbsp;&nbsp; &nbsp;Author: Andrea Kent Past President and Board Member, Renewable Industries Canada Vice President of Industry and&nbsp; Government Affairs,&nbsp; Greenfield Global Inc.

2024-02-06 - Springboard or Hurdle? LCA in Clean Fuels Policy and Investment (Ethanol Producer Magazine)

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Life cycle carbon assessments (LCA) are used in clean fuels policy. They are also key tool that can help investors and companies decide where to invest their money, but LCA integrity must be a priority. 

Springboard or Hurdle? LCA in Clean Fuels Policy and Investment

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