Clean Fuel Regulations - Credit Market Reporting

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) •…

Publisher

Environment and Climate Change Canada

Resources

2

Updated

2026-09-08