Net Zero Compare
Canada Clean Electricity Regulations (CER)

Canada Clean Electricity Regulations (CER): Canada’s Clean Electricity Regulations establish a binding pathway to a net-zero electricity grid by 2035

Maílis Carrilho
Written by Maílis Carrilho
Updated on December 15th, 2025

Summary

Canada’s Clean Electricity Regulations (SOR/2024-263) create a federal emissions control regime under the Canadian Environmental Protection Act to limit greenhouse gas pollution from fossil fuel-fired electricity generation. Beginning in 2035, the Regulations prohibit emissions above annual limits tailored to the capacity of covered electricity generating units, with stricter intensity limits and mechanisms for compliance flexibility, including offset credits. The CER is technology-neutral and designed to help transition the electricity sector toward net-zero emissions by 2050, while providing flexibility to maintain grid reliability and affordability. They apply to most fossil fuel generation units connected to the grid and include reporting, compliance, and enforcement obligations under federal environmental law. The regime supports Canada’s broader climate commitments by reducing emissions and encouraging clean energy deployment across provincial grids.

Details

Jurisdictions
  • Canada
Exemptions

Compliance is mandatory for covered electricity generation units as defined in the Regulations.

Criteria:

Emissions performance standards apply to new units and, after transition periods, to existing units.

Reporting and recordkeeping obligations apply throughout the compliance period.

Exceptions:

Limited compliance flexibilities exist for emergency generation, grid reliability, and specific technical circumstances as defined in the Regulations.

Certain units may qualify for transitional treatment or time-limited exemptions, subject to strict conditions and documentation.

Non-emitting generation sources are outside the scope of the emissions performance standard.

Deep dive

2 min read
Published Dec 15, 2025

📩 Stay ahead of climate regulation and reporting shifts

Regulatory updates, reporting standards, and new climate software — distilled into one concise weekly brief for decision-makers.

Thanks for signing up. Please check your inbox to confirm your subscription.

Practical updates. Once per week.


What’s Required

Regulated electricity-generating units must comply with an emissions performance standard that effectively limits lifecycle greenhouse gas emissions from electricity generation. Operators must:

  • Track and report emissions from covered units.

  • Ensure new and existing fossil fuel-fired units meet prescribed emissions limits by applicable compliance dates.

  • Implement compliance strategies such as fuel switching, carbon capture and storage, limited operating hours, or unit retirement.

  • Maintain records demonstrating compliance with the emissions standard and reporting requirements.

Important Deadlines

  • By 2035: Most fossil fuel–fired electricity-generating units must meet the emissions performance standard (corresponds to the net-zero objective for the grid).

  • Interim Compliance Periods: Specific intermediate timelines and milestones are set within the Regulations (e.g., phased attainment requirements), and reporting may be required annually.

Current Status

  • The Clean Electricity Regulations are finalized and in force.

  • The framework is designed to align the electricity sector with Canada’s 2035 net-zero grid objective, with phased application through the 2030s.

  • Regulatory guidance continues to be developed to support implementation and compliance clarity.

Penalties for Non-Compliance

  • Non-compliance is subject to enforcement under the Canadian Environmental Protection Act.

  • Penalties can include significant fines, compliance orders, and potential prosecution depending on the severity and duration of the violation.

Examples of Known Violations

  • A utility operating a natural gas-fired power plant must either retrofit the unit with carbon capture, limit its operating hours, or plan retirement by the applicable compliance deadline.

  • A province relying on fossil generation for peak demand must document eligibility for any grid reliability flexibility relied upon.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
Our principle

Cut through the green tape

We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.

Added on Dec 15, 2025 by Maílis Carrilho ·