Carbon intensity – a critical metric in climate policies aimed at reducing emissions of energy sources – is becoming an ever-important consideration as federal and provincial governments develop policies that reward low-carbon fuels to reduce emissions and reach a net-zero target.
The CPA contracted an independent firm, IHS Markit, which is now part of S&P Global Commodity Insights, to complete a lifecycle analysis of the GHG emissions intensity of Canadian propane. Propane already has a low-carbon intensity number but the S&P Global Commodity Insight analysis, which was based on three distinct propane pathways, shows that the average GHG intensity of Canadian propane is slightly lower than the current estimate from Environment Climate Change Canada.
The study was introduced to CPA members on April 13 in a webinar where the S&P Global Commodity Insight team explained the study and the preliminary results. The webinar will be available shortly on the CPA website and Youtube channel. They also communicated why understanding the carbon intensity of propane is important and why the propane industry must be responsive to ensure climate policies accurately reflect the low-emission characteristics of propane.
The study is currently undergoing a peer review for third-party verification. Once all results are established, the final study will be emailed to members and published on the CPA website and social media channels, along with articles published in CPA communications. Kevin Birn, Vice President of North American Crude Oil Markets with S&P Global, will be presenting at the CPA Leadership Summit (register here!) to discuss the study and how members can utilize the results to better position their companies as the investment world increasingly looks to the energy sector carbon scores. The CPA will also be issuing a news release to targeted journalists and key stakeholders as well as continuing engagement with federal, provincial and municipal governments.
For more information, please contact VP Government Relations, West, Katie Kachur at katiekachur@propane.ca.