2024 ESG Report FINAL - Report - Page 14
Are Valero's GHG emissions of low-carbon
fuels audited and certi昀椀ed?
Do low-carbon fuels have tailpipe
emissions?
Yes, our low-carbon fuels are audited and certi昀椀ed not
only as part of the limited assurance engagement by
external auditors but also by independent auditors
representing the countries, states or provinces where we
sell low-carbon fuels.
Yes, low-carbon fuels combust just like the fossil
fuel counterparts. However, low-carbon fuels have
lower life cycle emissions than fossil fuels due to the
biological origins of the feedstock. For instance, in
life cycle GHG emissions calculations, the tailpipe
emissions released from combusting ethanol are
offset by the carbon uptake during new corn crop
growth. As a result, vehicles running on low-carbon
fuels produce less net CO2 per mile traveled than
vehicles running on conventional fuels.
Do low-carbon fuels displace fossil fuels?
Yes, California, one of the world's largest consumers
of low-carbon fuels, has reported that, even with
increased population and economic growth, more
than 44% of transportation diesel and more than 6%
of gasoline have been displaced by low-carbon fuels
since 2011.17
Where are Valero's low-carbon fuels
sold?
Our low-carbon fuels are sold around the world,
including continental Europe, Scandinavia, the U.K.,
Latin America, Mexico, Canada and the United States,
especially in California, Oregon and Washington. We
believe that our ability to supply these low-carbon
fuels can play an important role for governments
and others to achieve their GHG emissions reduction
targets. See table below for global low-carbon fuel
regulations and table on page 15 for global SAF.
In the case of California’s LCFS, each certi昀椀ed pathway
follows very stringent rules and certi昀椀cations processes.
As of 2023, California’s LCFS had certi昀椀ed more than
1,350 fuel pathways of low-carbon fuel CI calculations.
Pathways are “[v]ariations in feedstock types, origin,
raw material production processing ef昀椀ciencies and
transportation,” all of which contribute to an individual
producer’s fuel pathway CI18 and are independently
veri昀椀ed. California's certi昀椀cations are based upon ISO
14064-3 and 14065. The EU requires certi昀椀cation bodies
be accredited to ISO 17065 and 14065 and for audits to be
conducted in accordance with ISO 19011 or the equivalent.
In 2023, more than 50 independent veri昀椀cations were
conducted on our low-carbon fuels production, some of
which included a partial or full traceability review of the
supply chain.
Why don’t you use the GHG Protocol to
measure the carbon content of your lowcarbon businesses?
We don’t use it because the GHG Protocol is inconsistent
with global low-carbon fuel regulations, which base CI
calculations on LCA and account for the full fuel life cycle.
For instance, combustion of biofuels is not part of the
accounting of Scope 3, Category 11 in the GHG Protocol.
Global Low-Carbon Fuel Regulations19
2030 GHG Emissions
Reduction Target
Net Zero GHG
Emissions Target
Primary Transportation Fuel Policy
Mechanism
2030 Transportation Fuels Goal
California
40%
Net zero by 2045
Low Carbon Fuel Standard (LCFS)
Reduce the CI of transportation fuels
by at least 20%
Canada
40 to 45%
Net zero by 2050
Clean Fuel Regulations (CFR)
Reduce the CI of transportation fuels by 15%
EU
55%
Net zero by 2050
Renewable Energy Directive III (REDIII)
Replace 29% of transport fuels with renewable
energy, or reduce sector GHG intensity by 14.5%
UK
68%
Net zero by 2050
Renewable Transport Fuel Obligation
(RTFO)
Replace 19% of transport fuels
with renewable fuels
Other
Policies
in Place
Potential
Policies
14
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Oregon’s Clean Fuels Program requires a 20% CI reduction by 2030 and a 37% reduction by 2035.
Washington State’s Clean Fuel Standard requires a 20% CI reduction by 2034.
New Mexico enacted a Clean Fuel Standard in 2024, for implementation in 2026.
British Columbia's LCFS requires a 30% CI reduction by 2030.
Norway has a biofuel blending mandate for diesel of 40% by 2030.
Sweden currently has a diesel GHG reduction requirement of 66% by 2030.
Finland aims for 34% of transport fuels to be biofuels by 2030.
• Hawaii, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada and Vermont are considering low-carbon fuel
programs.
