Rich oil bigwigs took a blow when Europe announced their step away from oil sands crude to cleaner sources of fuel that would meet the continent’s target of lower carbon emissions. Although not affecting Canada directly, this move could possibly influence other countries, such as China, into following the new policy and damage future business agreements in this billion-dollar industry.

The Canadian government intends to fight this move, possibly turning over to the World Trade Organization as they believe the European Union is discriminating against the country’s immense crude oil resources. This move also adds to the already negative view of Canada’s largest resource.

Although this is major hit to Canada’s economy, globally, it would help the global warming cause; there would be a reduction of carbon emissions (6% of transport fuels by 2010 in Europe) and greenhouse gases, as well as a cleaner environment. Despite the fact that Europe’s move may affect Canada and the oil industry, you can’t deny that in the long run, this move may benefit the well-being of future generations.

Reference Article: http://www.theglobeandmail.com/report-on-business/international-news/european/europe-labels-crude-from-oil-sands-dirty-fuel/article2191203/