What are the Canada’s Clean Fuel Regulations?
The Canadian Clean Fuel Regulations (CFR) is a national clean fuel program scheduled to go into full effect July 1, 2023. The goal of Canada’s Clean Fuel Regulations is to reduce the carbon intensity of the fuel used in Canada, specifically a 15% reduction in average carbon intensity from 2016 emissions by 2030. The CFR are similar to programs that have been implemented already in California, Oregon, Washington and British Columbia, however, Canada shows leadership as the first country in the world to adopt a clean fuel program at the national level.
The CFR aim to achieve carbon reduction goals by setting performance standards for clean fuels and encouraging the use of lower-carbon fuels, such as electricity. The Canadian CFR are administered by the Ministry of Environment and Climate Change and will be implemented and enforced by the Canadian Environmental Protection Agency (CEPA).
As a registered corporate entity in Canada, e-Mission Control can help facilitate participation in the CFR once the program is active.
How Do You Earn and Monetize Credits?
Energy Consumption Data Collection
eMC submits all reports – We register our partners in all appropriate national systems, manage reporting submissions, system management and all other government interaction needed to generate Canadian Clean Fuel Regulations credits.
Data Reporting and Credit Generation
Every year data is collected and/or reconfirmed, reports are developed and submitted to the Ministry, credits are generated, transacted, transferred, and payments are issued to credit-generators. e-Mission Control manages all of this for you, with our proprietary SaaS solution.
Credit Transaction and Monetization
e-Mission Control generates and trades your credits – We trade your credits on an open market to oil producers and refiners required to purchase them. We leverage the best pricing by combining your credits with the rest of our portfolio.
After the reporting compliance date, you will be issued incentive payments to help advance your company’s sustainability initiatives.
Canadian Clean Fuel Regulations Credit Market Function
Under Canada’s CFR program, businesses will be able to earn credits by manufacturing or importing low-carbon fuels, implementing changes that decrease the carbon footprint of their fuels, or buying verified carbon offset credits. Businesses with extra credits can then sell them to other businesses that need to balance out deficits.
Using electric equipment in operations may qualify a company for participation in the CFR. Companies that use electric equipment will be able to generate CFR credits by demonstrating that their electricity usage results in lower carbon emissions compared to the standard. These credits can then be sold to fuel suppliers and importers who are required to comply with the standard, but have not been able to reduce the carbon intensity of their own fuels to the required level.
For more information about the Canadian Clean Fuel Regulations and how your organization can get started earning credits, contact us today through our request consultation form or at