2025 Valero Report on Guiding Principles - Flipbook - Page 14
Do low-carbon fuels displace fossil fuels?
Yes. California, one of the world's largest consumers of low-carbon fuels, has reported that even with increased
population and economic growth, more than 44% of transportation diesel and more than 6% of gasoline have
been displaced by low-carbon fuels since 2011.11
Where are Valero's low-carbon fuels
sold?
Our low-carbon fuels are sold around the world,
including continental Europe, Scandinavia, the
U.K., South America, Mexico, Canada and the
United States, especially in California, Oregon
and Washington. We believe that our ability
to supply these low-carbon fuels can play an
important role for governments and others to
achieve their GHG emissions reduction targets.
Are Valero's GHG emissions of low-carbon
fuels audited and certified?
Yes, our low-carbon fuels are audited and certi昀椀ed
not only as part of the limited assurance of our GHG
emissions disclosures with external auditors but also by
independent auditors representing the countries, states or
provinces (including certain international organizations or
certi昀椀cation programs) where we sell low-carbon fuels.
In the case of California’s Low Carbon Fuel Standard
(LCFS), each certi昀椀ed pathway follows very stringent rules
and certi昀椀cation processes. As of 2024, California’s LCFS
Why don’t you use the GHG Protocol to
measure the carbon content of your
low-carbon businesses?
We are informed by the GHG Protocol but we
don’t use it because of the complexity of our
business, especially for low-carbon fuels that
have to comply with global low-carbon fuel
standards and policies that base CI calculations
on LCA and account for the full fuel life cycle.
For instance, combustion of biofuels is not part
of the accounting of Scope 3, Category 11 in the
GHG Protocol but it is counted by global LCA
methodologies.
had certi昀椀ed more than 2,400 fuel pathways of low-
carbon fuel CI calculations. Pathways are “[v]ariations
in feedstock types, origin, raw material production
processing ef昀椀ciencies and transportation,” all of which
contribute to an individual producer’s fuel pathway CI12
and are independently veri昀椀ed. California's certi昀椀cations
are based upon ISO 14064-3 and 14065. The EU requires
certi昀椀cation bodies be accredited to ISO 17065 and 14065
and for audits to be conducted in accordance with ISO
19011 or the equivalent. In 2024, more than 64 independent
veri昀椀cations were conducted on our low-carbon fuels
production, some of which included a partial or full
traceability review of the supply chain.
Global Low-Carbon Fuel Regulations Driving Demand Growth for Renewable Diesel13
2030 GHG Emissions
Reduction Target
Net-Zero GHG
Emissions Target
Primary Transportation Fuel Policy
Mechanism
2030 Transportation Fuels Goal
California14
40%
Net-zero by 2045
Low Carbon Fuel Standard (LCFS)
Reduce the carbon intensity of transportation
fuels by at least 30%
Canada
40 to 45%
Net-zero by 2050
Clean Fuel Regulations (CFR)
Reduce the carbon intensity of transportation
fuels by 15%
EU
55%
Net-zero by 2050
Renewable Energy Directive III (REDIII)
Replace 29% of transport fuels with renewable
energy, or reduce sector GHG intensity by 14.5%
UK
68%
Net-zero by 2050
Renewable Transport Fuel Obligation
(RTFO)
Replace 19% of transport fuels
with renewable fuels
Oregon
New Mexico
Clean Fuels Program requires a 20% carbon intensity reduction by 2030 and a 37% reduction by 2035
Clean Transportation Fuel Standard will require a 20% carbon intensity reduction by 2030
Washington State
Clean Fuel Standard requires a 45% carbon intensity reduction by 2038
British Columbia
Low Carbon Fuel Standard requires a 30% carbon intensity reduction by 2030
Norway
Potential Policies
14
Biodiesel blending mandate of 33% by 2030
Hawaii, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada and Vermont are considering low-carbon fuel programs.
