ESG Report - Report - Page 13
STRATEGY
LOW-CARBON
ENVIRONMENT
About Low-Carbon Fuels
How are Valero's GHG Emissions
Calculated for Low-Carbon Fuels?
Life cycle GHG emissions analysis8 is used
to calculate the total emissions impact of
low-carbon fuels from cradle to grave, as
depicted in the graphic to the right. The
result is expressed as a carbon intensity
(CI) value per unit of energy. A lower
CI value indicates lower life cycle GHG
emissions and higher market value for
the product.
Are Valero's GHG Emissions of LowCarbon Fuels Audited and Certified?
Yes, independent verifications are
undertaken by regulators worldwide and
are used in transactional valuations by
sophisticated buyers of these products.
For instance, California's certifications
are based upon ISO 14064-3 and 14065.
In 2022, more than 45 independent
verifications were conducted on our lowcarbon fuels production.
SAFETY
COMMUNITY
PEOPLE
GOVERNANCE
FEEDSTOCK
PRODUCTION AND
TRANSPORTATION
FUEL PRODUCTION
AND DISTRIBUTION
USE OF THE
FINISHED FUEL
AG & FORESTRY
SECTOR
LOW-CARBON FUEL
FACILITY
TRANSPORTATION
FUEL
Energy Inputs
Chemical Inputs
Process Energy Use
Material Inputs
Where are Valero's Low-Carbon Fuels Sold?
Governments across the world have issued, or are considering
issuing, low-carbon fuel regulations, policies and standards to help
reduce GHG emissions by increasing the percentage of low-carbon
fuels in the transportation fuel mix.
These regulations, policies and standards include, but are not limited
to, the U.S. Environmental Protection Agency (EPA) Renewable Fuel
Standard (RFS), California Low Carbon Fuel Standard (LCFS), Canada’s
Clean Fuel Regulations (CFR) and the EU’s Renewable Energy Directive
II (RED II). We believe that our ability to supply these low-carbon fuels
can play an important role in helping governments achieve their GHG
emissions reduction targets. See table below for global low-carbon
fuel regulations.
Global Low-Carbon Fuel Regulations9
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
Reduce the carbon intensity of
transportation fuels by at least 20%
Canada
40 to 45%
Net zero by 2050
Clean Fuel Regulations
Reduce the carbon intensity of
transportation fuels by 15%
EU
55%
Net zero by 2050
Renewable Energy Directive II
Replace 14% of transport fuels
with renewable energy
UK
68%
Net zero by 2050
Renewable Transport Fuel Obligation
Replace 19% of transport fuels
with renewable fuels
Other
Policies
in Place
Potential
Policies
•
•
•
•
•
•
Oregon’s Clean Fuels Program requires a 20% carbon intensity reduction by 2030 and a 37% reduction by 2035
Washington State’s Clean Fuel Standard requires a 20% carbon intensity reduction by 2034
British Columbia and Ontario have existing low-carbon fuels policies
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
• New York continues to evaluate a Clean Fuel Standard in order to meet its goal of reducing emissions 85% by 2050
• Illinois, Massachusetts, Michigan, Minnesota, New Mexico, Nevada and Vermont are considering low-carbon fuel
programs
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT •
13
