What are the Clean Fuel Regulations (CFR)?
Canada’s CFR is a federal market-based program that incentivizes clean fuel technology by establishing emissions reduction targets for gasoline and diesel fuels while issuing credits to those who exceed targets and deficits to those who do not meet the targets. Deficit holders are then required to offset their deficits by purchasing credits from the market […]
Canada’s CFR is a federal market-based program that incentivizes clean fuel technology by establishing emissions reduction targets for gasoline and diesel fuels while issuing credits to those who exceed targets and deficits to those who do not meet the targets. Deficit holders are then required to offset their deficits by purchasing credits from the market each year. The policy intends to decrease the Carbon Intensity (CI) of gasoline and diesel by 15% of 2016 levels and reduce GHG emissions by 26 million tons by 2030.
The CI reduction obligation falls on suppliers (producers, importers, distributors) of petroleum-based fuels. Primary suppliers are subject to two requirements — a reduction requirement, where the supplier must decrease the CI of their fuel pool, and a volumetric requirement, where the fuel pool must contain a minimum percentage of low-CI fuel.
