As part of the Paris Agreement and other regional sustainability goals, countries across the globe are formulating strategies to reduce greenhouse gas emissions. The resultant policies target numerous different areas such as stationary emissions, electricity production, and transportation fuel sourcing. Within the transportation sector, one aspect that has spurred quite a bit of investment relates to reducing the carbon intensity of transportation fuels. The “low carbon fuel” policies that are in place today, coupled with those that are being evaluated for the future, have the potential to displace a sizeable portion of the petroleum-based fuels in the regions where they are adopted. In today’s blog, we begin a series on low carbon fuel policies, the mechanisms being evaluated to meet increasingly stringent regulations, and the impact these regulations could have on refined-products markets.
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