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ARTICLE · 12 JULY 2022

Canada Finalizes Clean Fuel Regulations

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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On July 6, 2022, Canada released the final version of the long-awaited Clean Fuel Regulations (CFR or Regulations). The CFR will require producers and importers of liquid fossil fuels...

CanadaEnergy and Natural Resources
Dufferin Harper
Dufferin Harper
Tony Crossman
Tony Crossman
Nicole Bakker
Nicole Bakker
Paulina Adamson
Paulina Adamson
Jacob Roth (Articling Student)
Jacob Roth (Articling Student)
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On July 6, 2022, Canada released the final version of the long-awaited Clean Fuel Regulations (CFR or Regulations). The CFR will require producers and importers of liquid fossil fuels, such as gasoline and diesel, to gradually reduce the carbon intensity (CI) of these fuels beginning in December 2023. The federal government expects these reductions will result in a 15% decrease in the CI of liquid fuels below 2016 levels by 2030. Annual CI reduction requirements can be satisfied in a variety of ways, including through a newly established credit market.

This bulletin highlights the compliance credit aspects of the CFR, opportunities for involvement in the credit market and potential interactions between the CFR and provincial renewable fuels regimes.

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