Description

The Clean Fuel Regulations (the Regulations) are an important part of Canada’s climate plan to reduce emissions, accelerate the use of clean technologies and fuels, and support sustainable jobs in a diversified economy. The Regulations require producers and importers of fossil gasoline and diesel fuel to reduce the life cycle carbon intensity (CI) of the gasoline and diesel fuel they produce and import for use in Canada by an increasingly stringent amount each year, thereby reducing greenhouse gas emissions. A life cycle approach is used to account for emissions across all stages of the fuel’s production and use, from crude extraction through processing, distribution, and end use. Carbon intensity reduction and volumetric requirements took effect on July 1, 2023. The Clean Fuel Regulations establish a compliance credit market whereby the annual carbon intensity reduction requirements are met through the creation and acquisition of compliance credits, from actions taken in any of the following three categories: • Compliance Category 1 –projects that reduce the life cycle carbon intensity of liquid fossil fuels (e.g. carbon capture and storage, use of low-CI electricity) • Compliance Category 2 – production and import of low-CI fuels for use in Canada (e.g. ethanol, biodiesel, hydrogenation-derived renewable diesel), and • Compliance Category 3 – supply of fuel or energy to advanced vehicle technology (e.g. electricity or hydrogen in vehicles). Compliance credits are created under compliance categories 1 and 3 (e.g. hydrogen fuelling and EV charging) annually on April 30 with the submission of the Annual Credit Creation Report. Compliance credits are created quarterly under compliance category 2 for low-CI fuels produced and imported and under category 3 for fuelling vehicles with renewable propane or renewable natural gas, occurring within the 3 months that follow the end of each quarter, i.e. before: • June 30 for volumes produced and imported from January 1 to March 31 (Q1) • September 30 for volumes produced and imported from April 1 to June 30 (Q2) • December 31 for volumes produced and imported from July 1 to September 30 (Q3), and • March 31 for volumes produced and imported from October 1 to December 31 (Q4).

Resources

Name	Format	Description	Link
Clean Fuel Regulations 2025 Quarterly Credit Market Report - Q1 V2	HTML		https://data-donnees.az.ec.gc.ca/data/climate/products/clean-fuel-regulations-credit-market-reporting?lang=en
Rapport trimestriel sur les données du marché des unités de conformité du Règlement sur les combustibles propres T1 2025 V2	HTML		https://data-donnees.az.ec.gc.ca/data/climate/products/clean-fuel-regulations-credit-market-reporting?lang=fr

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