Ottawa fights EU’s dirty fuel label on oil sands: Globe

European Union politicians are preparing to label Canadian oilsands a “dirty fuel,” according to a report in the Globe and Mail,  which could cause European oil companies to pull back investments in northern Alberta. That is fuelling fears that similar efforts could take place in U.S. states.

After backtracking in the face of Canadian opposition, Europe’s environment commission is once again moving forward with its plan to discourage the use of unconventional fuel sources such as the oil sands.

In concert with the oil industry, Ottawa has pursued an aggressive strategy in the United States and Europe to defend the oil sands and attract investment to boost production. While Canada does not export oil to Europe, the government and industry fear the EU’s labeling of the oil sands as an undesirable fuel source would provide momentum to similar efforts in U.S. states.