Phasing inMulti-fuel
Clean Fuel Regulations, SOR/2022-140
Producers and importers of gasoline and diesel must reduce the carbon intensity of those fuels against a 2016 baseline.
Timeline
- 2022
Regulations registered; registration and reporting begin.
- 2023
First reduction requirement of 3.5 gCO2e/MJ takes effect (1 July).
- 2026
Requirement steps up on the annual schedule toward 2030.
- 2030
14 gCO2e/MJ carbon-intensity reduction.
Requirements
- Reduction requirement rises each year to 14 gCO2e/MJ by 2030.
- Legacy volumetric requirements remain: 5% renewable content in gasoline and 2% in diesel.
- Credits are created by low-carbon-intensity fuel supply, CI-reducing projects at facilities, and end-use fuel switching.
- Registration, quarterly reporting and annual verification by an accredited third party.
Compliance status & enforcement
- Administrator
- Environment and Climate Change Canada
- How compliance is shown
- Credit creation and retirement tracked in the CFR Credit and Tracking System; a compliance-credit market plus a compliance fund mechanism capped at a set price.
- Penalty for shortfall
- Offences and penalties under CEPA 1999, including monetary penalties and prosecution.
- Tradable unit
- CFR compliance credit (one tonne CO2e)