Proposed Clean Fuel Regulations to Replace Renewable Fuels Regulations

The proposed Clean Fuel Regulations is published and available in Canada Gazette Part 1. Vol. 154. The Government of Canada has committed to taking action on climate change. At the United Nations Framework Convention on Climate Change (UNFCCC) conference in December 2015, the international community, including Canada, adopted the Paris Agreement, an accord intended to reduce global GHG emissions to limit the rise in global average temperature to less than 2°C above pre-industrial levels and to aim to limit the temperature increase to 1.5°C. As part of its Intended Nationally Determined Contribution (INDC) commitment under the Paris Agreement, Canada pledged to reduce national GHG emissions by 30% below 2005 levels by 2030.

The Clean Fuel Regulations is to be finalized in late 2021 and brought into force in 2022. These regulations will require carbon-intensity (CI) reductions in liquid fossil fuels (i.e., gasoline, diesel, fuel oils, etc.) produced and imported into Canada. The CFR will be implemented in December 2022 under the Canadian Environmental Protection Act, 1999. Non-compliance may therefore result in penalties.

The proposed Clean Fuel Regulations would require liquid fossil fuel primary suppliers (i.e. producers and importers) to reduce the carbon intensity (CI) of the liquid fossil fuels they produce in and import into Canada from 2016 CI levels by 2.4 gCO2e/MJ in 2022, increasing to 12 gCO2e/MJ in 2030. Primary suppliers who produce or import less than 400 m3 of liquid fossil fuel will not be subject to the regulations.

The Renewable Fuels Regulations established in August 2010 will be repealed.

More information:
Clean Fuel Regulations
Clean Fuel Standard

Clean Fuel Standard: proposed regulatory approach