Canada CFR Program
ABOUT THE PROGRAM
Canada CFR
Canada’s Clean Fuel Regulations (CFR), a key component of Canada’s 2030 Emissions Reduction Plan, require producers and importers of gasoline and diesel, called primary suppliers, to reduce the lifecycle carbon intensity (CI) of the gasoline and diesel they produce or import in Canada. The CFR uses a performance-based lifecycle approach and establishes a credit market that will incentivize the use of a broad range of low CI fuels (e.g. ethanol, biodiesel, renewable diesel), energy sources (e.g. hydrogen and electricity) and green technologies (e.g. carbon capture and storage).
The goal of the CFR is to significantly reduce greenhouse gas (GHG) emissions by making the everyday used fuels cleaner over time. The CFR requires liquid fossil fuel (gasoline and diesel) suppliers to gradually reduce the Carbon Intensity (CI) – or the amount of pollution – from transportation fuels they produce and sell for use in Canada over time by 15% (below 2016 levels) by 2030.
Canada’s CFS program, administered by the Environment and Climate Change Canada (ECCC), is aimed at delivering up to 26 million tons (Mt) of GHG emissions reductions in 2030.
PROGRAM BENEFITS
Benefits of opting into Canada’s CFS
By opting into the Canada’s CFS program and providing electricity as transportation fuel, electricity providers can earn CFS credits for each metric ton of CO2 equivalent (MTCO2e) emissions avoided through the use of electricity or hydrogen fuels. CFS credits hold a dormant monetary value and may be sold to regulated parties who must offset their CFS deficits created by the production, supply, and sale of fuels with a CI level higher than ECCC’s target amount.
PROGRAM ELIGIBILITY
Who can participate in the Canada’s CFS program?
Under the CFS program, for electricity used as a transportation fuel, the entities that are eligible to generate CFS credits include:
- Electric Vehicle Service Providers (EVSP)
- Electric Vehicle (EV) fleet operators
- Electric forklift fleet operators
PROGRAM REQUIREMENTS
Are there any requirements after opting into the CFS program?
Electricity providers that opt into the CFS program are subject to the reporting and record-keeping requirements. The electricity provider must submit annual reports. The data for the annual reports must be uploaded and submitted to the Credit and Tracking System (CATS).
Annual reporting for the prior calendar year must be submitted in the CATS system by April 30th of the following year.
ADDITIONAL INFORMATION
Where can you learn more about Canada’s CFS program?
For more information about Canada’s CFS program, you can visit their website here:
For additional details pertaining to Canada’s CFR regulation, click the link below: