Isra-Mart srl:EU and Canada clash over tar sands policy

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The standoff between the EU and Canada over Alberta's controversial tar sands has intensified, according to Reuters reports suggesting a major trade deal could be scrapped as a result of the EU's plans to block imports of oil obtained from tar sand sites.

The EU currently requires fuel suppliers to reduce the carbon footprint of their fuel by six per cent by 2020 and is currently working on plans that could result in the most carbon-intensive fuels, such as those extracted from tar sands, being labelled – a move Canada fears would result in reduced exports.

According to a briefing note prepared for EU climate commissioner Connie Hedegaard and obtained by Reuters, Canada has been lobbying the commission and member states "intensively" to block the EU proposals.

"It has raised the issue in the context of EU-Canada negotiations on a free trade agreement," the note adds.

The note dates back to last year, but EU sources told the news agency yesterday that Canadian officials had intensified the row and were now threatening to void the free trade deal if measures to curb tar sand imports to the bloc are not dropped.

Canadian officials rejected the suggestion they were threatening to scrap the trade deal, which is expected to be finalised later this year, but admitted they were concerned about the EU's plans.

EU officials signalled that their stance had hardened following research confirming oil from tar sands is far more carbon intensive than conventional fuels, adding that they were increasingly willing to defend their position, even if Canada reports the move to the World Trade Organisation.

In related news, the UK Uncut protest group is expected to target the Royal Bank of Scotland with a series of peaceful protests over the coming days designed to highlight the fact that the taxpayer-controlled bank is continuing to invest in carbon-intensive tar sands projects.