Summary
Details
- Canada
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.
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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.
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