Tar sands

Tar sands (or oil sands) are a naturally occurring mixture of sand, clay or other minerals, water and bitumen. According to the International Energy Agency, Canadian oil sands are expected to assume a rapidly expanding role in meeting future oil demand. However, there are environmental concerns associated with, among other things, the carbon dioxide (CO2) released during the extraction and processing of tar sands to produce useable fuel. Other environmental issues relate to water use, mining waste and deforestation.

The EC Fuel Quality Directive, as amended, introduces the requirement for fuel and energy suppliers (principally those providing fuel and energy for land-based transport, and other non-road mobile machinery) to reduce the lifecycle greenhouse gas (GHG) intensity of the fuel/energy that they supply by 6% per unit of energy by 2020. The European Commission has published a draft directive which sets out a methodology for determining greenhouse gas emissions; this differentiates the natural bitumen in tar sands from conventional crude oil. The Canadian Government has argued that such discrimination is unfair and not based on credible science.