G/TBT/N/CAN/632  
4 January 2021  
(21-0066) Page: 1/2 
Committee on Technical Barriers to Trade  Original:  English, French  
 
  
NOTIFICATION  
The following notification is being circulated in accordance with Article 10.6  
 
1. Notifying Member:  CANADA   
If applicable, name of local government involved (Article 3.2 and 7.2):   
2. Agency responsible:  Environment Climate Change Canada  
Name and address (including telephone and fax numbers , email and website 
addresses, if available) of agency or authority designated to handle comments 
regarding the notification shall be indicated if different from above:   
Canada's Notification Authority and Enquiry Point  
Technical Barriers and Regulations Division  
Global Affairs Canada  
111 Sussex Drive  
Ottawa (Ontario) K1A 0G2  
Canada  
Telephone: (343)203 -4273 
Fax: (613)943 -0346 
E-mail: enquirypoint@international.gc.ca  
3. Notified under Article 2.9.2 [X], 2.10.1 [   ], 5.6.2 [X], 5.7.1 [   ], other :  
4. Products covered (HS or CCCN where applicable, otherwise national tariff 
heading. ICS numbers may be provided in addition, where applicable):  Fuel 
(HS: 271012 and 271019) ; Quality (ICS 03.120), Environmental protection (ICS 13.020), 
Fuels (ICS 75.160)  
5. Title, number of pages and language(s) of the notified document:  Clean Fuel 
Regulations (323 pages, available in English and French)  
6. Description of content:  The proposed Clean Fuel Regulations  (the proposed 
Regulations) would require primary suppliers (i.e., liquid fossil fuel producers and 
importers) to reduce the carbon intensity (CI) of the liquid fossil fuels  they produce and 
import in Canada from 2016 CI levels by 2.4gCO 2e/MJ in 2022, increasing to 12gCO 2e/MJ 
in 2030. The proposed Regulations would also establish a credit market whereby the 
annual CI reduction requirement could be met via three main categorie s of credit -creating 
actions: actions throughout its lifecycle of fossil fuels that reduce the CI of the fossil fuel, 
supplying low -carbon fuels, and specified end -use fuel switching in transportation. Parties 
that are not primary suppliers would be able t o participate in the credit market as 
voluntary credit creators (e.g., low carbon intensity fuel producers and importers). In 
addition, the proposed Regulations would include the minimum volumetric requirements 
(minimum 5% low CI fuel content in gasoline a nd 2% low CI fuel content in diesel fuel 
and light fuel oil) currently set out in the federal Renewable Fuel Regulations . 
A Fuel LCA Model is being developed to support the development and implementation of 
the proposed Regulations. Low carbon intensity fu el producers would be permitted to use 
the model to determine facility specific CI values once 24 months of operating data is 
available. The propose Regulations will increase the use of biofuels in Canada and the G/TBT/N/CAN/632  
 
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  demand for biofuel feedstock. Only biofuels  made from biomass feedstock that adhere to 
land use and biodiversity criteria will be eligible for compliance credit creation. These 
criteria ensure the financial incentives created by the Regulations do not result in loss of 
biodiversity or negative land  use impacts from growing and harvesting biofuel feedstock. 
These criteria apply to feedstock regardless of geographic origin.  
A primary supplier may also choose avail of the compliance fund mechanism by 
contributing to a funding program in order to satisfy up to 10% of its annual reduction 
requirement. Funds or programs within a fund that reduce CO 2e emissions may be eligible 
to become registered funds, the fund must provide funding for projects or activities that 
support the deployment or commercial ization of technologies or processes that reduce 
CO2e emissions. For primary suppliers who are unable to satisfy their reduction 
requirement by 30 June  following the end of a given compliance period, a market clearing 
mechanism that facilitates credit acqu isition by primary suppliers would also be 
implemented.  
The majority of applications and reports must be submitted with a validation or 
verification statement that pertains to the validity of the application / report. The 
validation / verification body mus t have the appropriate accreditations as well as the 
application / report being reviewed by an independent reviewer.   
7. Objective and rationale, including the nature of urgent problems where 
applicable:  The proposed Regulations intend to reduce GHG emiss ions by reducing the 
lifecycle CI of liquid fossil fuels used in Canada. This would be achieved through a flexible, 
regulatory approach towards GHG reduction that would incentivize low -carbon fuel 
uptake, end -use fuel switching in transportation, and proce ss improvements in the oil and 
gas sector. The proposed Regulations would work in conjunction with other federal, 
provincial and territorial policies to contribute towards the Pan -Canadian Framework 
helping to achieve Canada's 2030 Paris target. The propos ed Regulations would 
encourage innovation and growth by increasing the likelihood of technology development 
and adoption in an effort to help transition Canada towards a low -carbon economy; 
Protection of the environment  
8. Relevant documents:   
• Canada Gazette, Part I, 19 December 2020, pages 3868 to 4191 (available in 
English and French)  
9. Proposed date of adoption:  Normally within 12 months of publication in the Canada 
Gazette, Part I.  
Proposed date of entry into force:  These regulations would come into force the day 
on which they are registered. Reduction requirements for primary suppliers would come 
into force on 1 December 2022.  
10. Final date for comments:  4 March 2021  
11. Texts available from:  National enquiry point [X] or address, telephone and fax 
numbers and email and website addresses, if available , of other body:   
The electronic version of the regulatory text can be downloaded at:  
http://www.gazette.gc.ca/rp -pr/p1/2020/2020 -12-19/html/reg2 -eng.html   
http://www.gazette.gc.ca/rp -pr/p1/2020/2020 -12-19/html/reg2 -fra.html