The Regulations will replace the current federal Renewable Fuels Regulations.
The Clean Fuel Regulations require liquid fossil fuel producers and importers to gradually reduce the carbon intensity of the gasoline and diesel that they produce and sell for use in Canada. In the Regulations, carbon intensity includes GHG emissions from the extraction, refining, distribution, and use of the fuel. In 2023, the carbon intensity reduction requirement will start at 3.5 gCO2e/MJ and will increase by 1.5 gCO2e/MJ each year, reaching 14 gCO2e/MJ in 2030.
The Clean Fuel Regulations establish a credit market. Producers and importers of gasoline and diesel must create or buy credits to comply with the reduction requirements.
