New Westminster, B.C. – The City of New Westminster has sold British Columbia Low Carbon Fuel Standard (BC LCFS) credits it earned during the 2013-2020 period to Elbow River Marketing Ltd. for $26,395,700. These funds have been used to establish a new Climate Action Reserve Fund in the City’s budget to support New Westminster’s commitment to a zero carbon future.
In B.C., suppliers of transportation fuels with a high carbon intensity (such as gasoline or diesel) are required to reduce the carbon intensity of their fuels. One option to do so is through the purchase of low carbon fuel credits, which are generated by suppliers of transportation fuels with a low carbon intensity (such as electricity or biodiesel). New Westminster earns BC LCFS credits as a Part 3 classified supplier due to having its own electrical utility, and offered its credits for sale to qualified proponents in a competitive process.
“The City earns low carbon fuel credits on an ongoing basis by providing electricity to propel the SkyTrain and charge electric vehicles,” said Mayor Jonathan X. Coté. “Selling our credits puts money in our pocket for investing in more climate action initiatives.”
The $26 million earned in the sale will fund a new reserve, established through the passing of the Climate Action Reserve Fund Bylaw No. 8321, 2022. The reserve will provide funding for one-time investments to accelerate projects, actions, or initiatives that support climate mitigation and adaptation by targeting energy and greenhouse gas reductions. The move is directly aligned with the City’s Seven Bold Steps for Climate Action.
“The establishment of a Climate Action Reserve Fund furthers our ability to take aggressive action towards achieving our 2050 net zero emissions goals, which has been a major strategic priority for Council the past few years,” said Mayor Coté.
The credit market creates financial incentive to reward low-carbon fuels in proportion to the amount of real, measurable emissions reductions they yield when substituted for conventional fuels. This generates revenue for low carbon transportation fuel suppliers and supports investment in clean fuels and vehicles.
Elbow River Marketing is a registered participant in the BC LCFS program and a Part 3 fuel supplier under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act. It is also a subsidiary of Parkland Corporation. Parkland is committed to the Canadian Government’s 2050 net-zero emission goal and is working on expanding its production of biofuels to reduce greenhouse gas emissions.
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