Clean Fuel Standard: proposed regulatory approach
The Clean Fuel Standard (CFS) is a key part of Canada’s climate plan. It will help us reduce our greenhouse gas emissions from transportation, industry and buildings.
The CFS regulations will cover all fossil fuels used in Canada. The first phase will set requirements for liquid fuels, such as gasoline and diesel. We expect these regulations to come into force in 2022, as planned. Subsequent phases will cover gaseous and solid fossil fuels and we expect them to come into force in 2023, as planned.
The Clean Fuel Standard Proposed Regulatory Approach presents the full regulatory approach for liquid fossil fuels. It builds upon the Regulatory Design Paper (2018) and the Clean Fuel Standard Regulatory Framework (2017). Extensive consultations have informed those documents and have helped shape this proposed approach.
We introduced many key elements in the Regulatory Design Paper; and we expand upon them here. We’ve also added some new elements, such as:
- annual carbon intensity reduction requirements for the liquid fuel class
- sustainability and land-use change criteria
- new credit creation opportunities
- fund contributions as a compliance mechanism
- credit clearance mechanism
- verification, reporting, measurements and records requirements
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