Canada proposes amendments to Clean Fuel Regulations

The Canadian federal government has announced proposed changes to the Clean Fuel Regulations aimed at strengthening the domestic low-carbon fuel industry. The amendments, which will be published in the Canada Gazette on October 30, are intended to close the competitiveness gap for Canadian producers and encourage long-term investment in clean-technology projects.

Key objectives of the proposal include supporting carbon capture and storage at low-carbon fuel facilities and the co-processing of biobased feedstocks, such as canola oil, with crude oil at refineries. The government aims to make it more cost-effective for companies to comply with regulations while gradually reducing emissions throughout the fuel supply chain.

Following the publication, a 75-day public consultation period will allow businesses, provinces, Indigenous partners, and the public to review the text and submit comments. Environment and Climate Change Canada noted that the existing credit market created by the current program is estimated to exceed $3 billion in value.