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In 2022, the Canadian government implemented the Clean Fuel Regulations (CFR) to lower the CI of transportation fuels, which is a significant source of greenhouse gas emissions in Canada. The program requires fuel suppliers to gradually reduce the CI of their fuels over time. The CFR includes a credit system where credits are issued per metric ton of CO2 equivalent reduced. Public and commercial EV (electric vehicle) charging activities are eligible to generate credits which need to be purchased by the obligated parties.
Provinces Eligible for CFR Credits:
Tracking Registry
Compliance Year
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Learn moreCFR applies to the sale or supply of any fuel in Canada. Fuel producers and importers are the primary regulated parties. Regulated parties that exceed the maximum CI compliance limit may meet compliance by purchasing credits that are issued to regulated parties with an average CI that is below the maximum CI compliance limit. CFR enforces a declining CI curve every year to ensure the continuous reduction of the transportation fuel industry’s environmental impact.
From 2023 to 2024, spot market pricing for CA LCFS credits has ranged from CAN$105 to CAN$250 per credit.
Regulated parties must report using the Credit and Tracking System (CATS) on a yearly schedule. The data needs to be submitted to a third party verifier for auditing purposes before being sent to the regulator.
As of the 2024 regulation, credits do not expire.
