Compliance options to meet the Clean Fuel Standard

The Clean Fuel Standard is a performance-based approach. It is designed to incentivize innovation and adoption of clean technologies and expand the use of low carbon fuels throughout the economy.

The Clean Fuel Standard gives fuel suppliers flexibility to meet the requirements in a cost-effective way that works best for them. It also creates an incentive for industries to innovate and adopt cleaner technologies to lower their compliance costs.

Compliance credits can be created in three ways:

The Clean Fuel Standard will complement other climate policies and investments, including carbon pollution pricing.

How it drives innovation and economic growth

The demand for credits under the Clean Fuel Standard will create a market signal for investment in low-carbon-intensity fuels and technologies. Statistics Canada found that Canada’s low carbon economy was already generating over $66 billion and jobs for more than 317,000 Canadians in 2018.

Timelines to implement the standard

Supporting documents

This information will be published on December 18, 2020, and is meant to support the formal 75-day consultation period that ends on March 4, 2021. Updated versions will be published alongside the final regulations.

Please contact us at ec.cfsncp.ec@canada.ca for copies of technical presentations pertaining to the proposed Regulations and supporting documents.

Life cycle assessment model

Information for industry, voluntary participants, and facilities regulated by the Clean Fuel Standard

A robust, transparent, and modern lifecycle assessment (LCA) model is being developed to support the implementation of the Clean Fuel Standard. In order to determine the carbon intensity of the various low carbon fuels produced in and imported into Canada, the model will set carbon intensity values, accounting for the amount of GHGs from all stages in a fuel’s lifecycle, from feedstock extraction to combustion, per unit of energy.

The timelines for the model’s development are:

Engagement and consultation

Environment and Climate Change Canada has engaged stakeholders, provinces and territories, Indigenous peoples, industries, and non-governmental organizations to seek views on the design for the development of the Clean Fuel Standard. See engagements and consultations.

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