Volatile Organic Compound Concentration Limits for Certain Products Regulations - Alternative compliance options

On this page you will find information related to the alternative compliance options available under the Volatile Organic Compound Concentration Limits for Certain Products Regulations.

The information includes 3 alternative compliance options in complying with the regulations. These voluntary alternative compliance options are:

Permit – Technical or Economic Non-Feasibility

This permit provided temporary relief from regulation requirements on the concentration or emissions potential when the regulatory limits came into effect. Note that new applications cannot be approved for this permit type.

To apply for this permit, manufacturers and importers needed to provide:

This permit allowed the regulated parties to continue manufacturing and importing a product for the duration of the permit under conditions set out by the regulations.

This permit needed to be applied for in advance of the limits coming into effect on January 1, 2024, for all product categories except disinfectants, which came into effect on January 1, 2025. This temporary permit was valid up to 2 years and could be renewed only once for up to another 2 years. A request for renewal needed to be submitted 90 days prior to expiry. Additional guidance and criteria for assessment of the application are provided in the application form.

Permits issued – Technical or Economic Non-Feasibility

Permits have been granted to the following organizations for the specified products.

Permit – Product Whose Use Results in Lower VOC Emissions

This permit allows innovative products to exceed the VOC concentration limits if, as a result of product design, formulation, delivery or other factors, the total VOC emissions are lower than those from a comparable compliant product when used according to the manufacturer’s written instructions.

A company must provide Environment and Climate Change Canada with:

This permit is valid up to 4 years and can be renewed. The request for renewal must be submitted 90 days prior to expiry. Additional guidance and criteria for assessment of the application are provided in the application form.

Permits issued – Product Whose Use Results in Lower VOC Emissions

Permits have been granted to the following organization for the specified products. These permits are valid until December 31, 2027.

VOC Compliance Unit Trading System (CUTS)

The VOC Compliance Unit Trading System allows companies to exceed the concentration limit for a product by:

Generating compliance units

Companies can generate compliance units with products that have been reformulated to concentrations lower than the limits set out in the regulations. Companies must submit a notice of intent to generate compliance units before October 1 of the first year in which they want to earn compliance units and report actual quantities in Canada (manufactured + imported – exported) by March 1 of the following year. Companies will receive confirmation of compliance units generated within 60 days of a complete report. Compliance units are valid for 2 years beginning on January 1 of the year following the calendar year in which they are generated.

Permits for products exceeding the VOC concentration limits

Products manufactured and imported into Canada that are over the regulatory limit must have permits.

To apply for a CUTS permit, companies must provide Environment and Climate Change Canada with:

Companies can compensate for the excess VOCs by generating compliance units from other products (averaging) or trading compliance units with another company.

A permit is required for products that exceed the regulatory limit. Permit holders must submit an annual report no later than March 1 of each year that includes actual quantities in Canada (manufactured + imported – exported), compliance units that are being used to compensate for the excess quantity of VOCs and a confirmation of intent to continue manufacturing or importing the product under the permit. If emissions are not balanced for the calendar year, the permit will be revoked.

Using and transfer of compliance units

A company can use or trade unused compliance units for 2 calendar years following their generation. If companies are transferring compliance units, they must jointly apply to the Minister.

Compliance Unit Trading System Participants

Generators:

The following organizations have applied to generate compliance units:

CUTS Permits Issued:

Compliance Units Trading System Permits have been granted to the following organizations for the specified products.

Related links

Contact us

Chemical Production and Products Division
Environment and Climate Change Canada
351 St. Joseph Blvd
Gatineau QC K1A 0H3
Email: Produits-Products@ec.gc.ca

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