The Government of Canada is helping strengthen Canada's low-carbon fuel industry by proposing changes to the Clean Fuel Regulations. This will support domestic production and encourage long-term reductions in greenhouse gas emissions. These amendments are part of the Government's broader efforts to build Canada strong by strengthening economic resilience, supporting Canadian workers and businesses, and ensuring Canada remains competitive in the face of rapid change.
The proposed amendments will be published in the Canada Gazette, Part I, on October 30, 2026, followed by a 75-day public consultation period. By creating the conditions for long-term investment and growth, together these proposed amendments would:
- Close the competitiveness gap facing Canadian low-carbon fuel producers so they can compete fairly in the domestic low-carbon fuel market.
- Create conditions for more investment in clean technology projects in the fuels sector, like carbon capture and storage at low-carbon fuel (for example, ethanol) facilities and co-processing bio-based feedstocks, like canola oil, along with crude oil at refineries.
- Make it easier and cheaper for companies to comply with the Regulations and supply fuels to Canadians and businesses that lower emissions gradually and reliably.
The Clean Fuel Regulations encourage companies to invest in cleaner technologies and reduce emissions throughout the fuel supply chain. Since the Regulations came into effect, the credit market has grown to more than $3 billion, supporting investment in low-carbon fuels, agriculture, forestry, and clean technology. The value of the Clean Fuel Regulations credit market is reflected in the investments, jobs, facilities, feedstock demand, and domestic production capacity that those credits help create and sustain across Canada.
These proposed amendments support the Government's goal of building a stronger, more competitive, and more resilient Canadian economy while continuing to reduce emissions. The Government of Canada is laying the foundations for a more prosperous Canada.
