Summary
Details
- Canada
Compliance is mandatory for regulated primary fuel suppliers.
Criteria:
Annual carbon intensity reduction targets apply, increasing over time.
Reporting, verification, and recordkeeping obligations apply across compliance periods.
Exceptions:
Certain fuels and uses are excluded or treated differently under the Regulations.
Compliance flexibilities exist through the credit market, allowing regulated parties to meet obligations through eligible actions rather than direct fuel changes.
Small suppliers below prescribed thresholds may be excluded from some obligations.
Deep dive
📩 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
Primary suppliers of liquid fossil fuels must:
Reduce the lifecycle carbon intensity of fuels supplied in Canada against regulated reduction schedules.
Register under the regulatory system and submit annual compliance reports.
Generate, acquire, and retire compliance credits to meet annual reduction requirements.
Maintain detailed records on fuel volumes, carbon intensity calculations, and credit transactions.
Important Deadlines
2022 (June 21/July 6): CFR was registered and published as SOR/2022-140, with regulatory text finalized and in force.
January 1 – June 30, 2023: Initial early compliance period under transitional CFR provisions.
2023 Compliance Year (calendar year): First full compliance period, with carbon intensity reduction starting at approximately 3.5 gCO2e/MJ relative to 2016 baseline.
Each Calendar Year (2024–2030): Progressive annual CI reduction requirements apply, increasing year-on-year (e.g., reaching 14 gCO2e/MJ by 2030 under the regulatory schedule).
2030: Target year for CFR carbon intensity ceiling, representing an approximate 15% reduction in lifecycle CI relative to 2016 levels.
Current Status
The Clean Fuel Regulations are in force and operational.
The framework replaces and expands upon earlier renewable fuel requirements by focusing on lifecycle emissions.
Credit markets and compliance infrastructure are active and evolving.
Penalties for Non-Compliance
Non-compliance may result in enforcement actions under CEPA.
Penalties include fines, compliance orders, and potential prosecution for serious violations.
Examples of Known Violations
A fuel producer supplying gasoline must reduce the average carbon intensity of its fuel pool or acquire sufficient credits to cover the annual requirement.
A renewable fuel producer can generate credits by supplying low-carbon fuels that displace higher-emission alternatives.
Resources
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.