On December 19, 2020, the proposed regulations for the Clean Fuel Standard was published with a 75-day comment period and continued consultations between Environment and Climate Change Canada and interested parties.
As the world including Canada strives to achieve net-zero emissions by 2050, there are major shifts to lower carbon and non-emitting fuels within Canada. The Clean Fuel Standard is one of the most important emissions-reduction policies in Canada’s climate and clean growth plan and is expected to reduce greenhouse gas emissions by 30 million tonnes annually by 2030.
The proposed Regulations for Clean Fuel Standard would help establish a credit market whereby the annual CI reduction requirement could be met via three main categories of credit-creating actions:
(1) actions that reduce the CI of fossil fuel throughout its lifecycle
(2) supplying low-carbon fuels, and
(3) specified end-use fuel switching in transportation.
Parties that are not fossil fuel primary suppliers would be able to participate in the credit market as voluntary credit creators by completing certain actions (e.g. low-carbon fuel producers and importers). In addition, the proposed Regulations would retain the minimum volumetric requirements (at least 5% low CI fuel content in gasoline and 2% low CI fuel content in diesel fuel and light fuel oil) currently set out in the federal Renewable Fuels Regulations (RFR).
Final regulations for the Clean Fuel Standard will be published in late 2021, with the coming into force of the regulatory requirement in December 2022.
Click for more details on the proposed regulation for the clean fuel standard