Californian Fuel CO2 Reduction Measure

California has become the first US state to legislate fuel-based CO2 reductions – one component of the state’s drive to lessen its carbon footprint.

On the 23rd April, California’s air resources board agreed to the introduction of a gradual CO2 reduction scheme, which begins in two years time and which – by 2020 – aims to have reduced transport emissions by a tenth.

Fuel manufacturers have a number of options though which they can comply with the measure.  These include:

• Buying carbon credits to offset emissions
• Making their own range of fuels more environmentally friendly
• Acquiring lower-carbon fuels from other producers, and reselling them

Low-Carbon Fuel Standard

By introducing such a low-carbon fuel standard, California could pave the way for other US states to follow in a similar vein, and/or cause a major shake-up of the transportation sector as a whole.  Warnings, however, were given by key industry figures on the need to assess the situation further, as well as on the potential economic impact.

Greenhouse gas emissions linked to the transport industry make up over 30 per cent of total US emissions, and 40 per cent of California’s, where more cars are sold than in any other state. 

As far as Mary Nichols - chairwoman of California’s air resources board – was concerned, California’s fuel CO2 reduction standard represented a significant move towards shifting the US away from traditional fuels, and into an age where low-carbon alternative fuels were much more in focus.

“By changing the way we think about fuels and requiring them all to be lower carbon, I think we are now finally creating an opportunity for other types of advanced transportation to compete on a level playing field”, she commented.

Greenhouse Gas Reduction Target

The Governor of California, Arnold Schwarzenegger, advocated implementing a low-CO2 fuel standard two years ago, as one method through which California could hit its greenhouse gas reduction target of one quarter by 2020.

In a statement issued in conjunction with the April 23rd announcement, Governor Schwarzenegger said:  “California's first-in-the world low-carbon fuel standard will not only reduce global warming pollution, it will reward innovation, expand consumer choice and encourage the private investment we need to transform our energy infrastructure.”

However, some degree of criticism was levelled at the measure, from those highlighting how it inherently opposed biofuels – particularly corn-based biofuels – and, thus, was set to work against climate change goals. 

The plan details what it calls a “cradle-to-grave” directive on CO2 emission reduction, covering carbon output not only from fuel use, but from indirect activities involved in manufacture and other stages.  In terms of ethanol, the plan takes into account the CO2 emissions associated with preparing the land for crop growth – something that the critics say is biased and puts it below other fuels from the outset.

With this in mind, biofuel executives received a letter from Ms Nichols, in which she stressed that ethanol would figure prominently within the state’s fuel market, short-term at least.