Canadian Authorities Release Draft National Clean Fuel Standard

Last Friday, Canadian authorities released for public comment a draft Clean Fuel Standard that requires liquid fuel producers to reduce the carbon content of fuels used in Canada. Low-carbon fuels like renewable natural gas (RNG) are expected to benefit from the programs by generating credits that can be purchased by covered fuel producers.

The proposal demonstrates the Government of Canada’s recognition of the full value of RNG – both as a stand-alone or blended fuel – as a significant means to reduce carbon and other emissions today and in the future. The release of the draft standard starts a 75-day comment period.

The Clean Fuel Standard – like the Low Carbon Fuel Standard adopted in U.S. states – takes a lifecycle approach to assessing the emissions associated with producing and using fuels. According to the issued notice, the Clean Fuel Standard will require liquid fossil fuel primary suppliers (i.e., producers and importers) to reduce the carbon intensity of their liquid fossil fuels from 2016 carbon intensity levels.

In 2022 the carbon intensity reduction requirement will start at 2.4 gCO2e/MJ and gradually increase over time to reach 12 gCO2e/MJ in 2030, a decrease of approximately 13 percent below 2016 levels. More details are available at: Canada Clean Fuel Standard.