What is the status of the CFR program?
Replacing the previous federal policy called the Renewable Fuels Regulations, the CFR came into full effect by regulating fuel suppliers on July 1, 2023. The first obligation fulfillment deadline is July 31, 2024, so participation may be relatively limited in the initial years; however, fleet operators and other organizations can also decide to voluntarily participate […]
Replacing the previous federal policy called the Renewable Fuels Regulations, the CFR came into full effect by regulating fuel suppliers on July 1, 2023. The first obligation fulfillment deadline is July 31, 2024, so participation may be relatively limited in the initial years; however, fleet operators and other organizations can also decide to voluntarily participate in the regulation immediately and there is incentive to act with urgency, for equipment purchase and registration must occur before those entities may generate credits. Credit generation can begin the day after applications are submitted, so every day of unregistered activity is a day value is being missed.
To support its national clean fuels sector, Canada is enacting a set of investments and initiatives that complement the CFR. It will take some time for CFR credit demand to increase, which creates a market signal for investment in low carbon intensity fuels and technologies. Credit prices in early bilateral trading activity have been in the range of CAD $200+.
