March 2022Clean Fuel Regulations: 
Target, Trajectory and TimingOUTLINE
•Considerations for 2030 Target
•Updated 2030 Target and Trajectory
•Updated Reference Carbon Intensities (CI)
•Credits Estimated in 2030
2CONSIDERATIONS FOR 2030 TARGET
3•In April 2021, Canada announced its new Nationally Determined 
Contributions of achieving a 40 to 45% reduction below 2005 levels by 
2030.
•Canada also remains committed to reaching net -zero emissions by 2050.
•Clean Fuel Regulations (CFR) are a critical element of Canada’s plan to 
reduce greenhouse gas emissions. 
•Since the publication of the proposed Regulations, the number and impact 
of complementary measures the Government has announced or 
implemented has increased significantly.
•Many stakeholders expressed concerns about the lack of signal for 
investment in low -CI fuels and advanced vehicles due to these various 
complementary measures, including the federal Investment Tax Credit for 
CCUS, the increased federal carbon price and the oil and gas cap.UPDATED 2030 TARGET AND TRAJECTORY
4•ECCC is considering changes to the proposed target and trajectory:
–First, to ensure regulated parties have enough time to comply with the 
regulations and that there is enough time for low-carbon technologies to ramp 
up;
–Second, to ensure the CFR sends a strong signal to the market for new, clean 
investment.
•A 14 g/MJ reduction requirement in 2030 is being considered, which 
represents a decrease of approximately 15% in CI below 2016 levels.
Increment 2022 2023 2024 2025 2026 2027 2028 2029 2030 and after
CGI1.2 per year 2.4 3.6 4.8 6 7.2 8.4 9.6 10.8 12
Proposed 1.5 per year 0 3.5 5.0 6.5 8.0 9.5 11 12.5 14UPDATED REFERENCE CARBON INTENSITY
5•The annual CI reduction requirements have an impact of the reference carbon 
intensities used in the calculation of credits.
•Fossil fuel baseline CI values have been updated since CGI based on quality control 
and quality assurance activities conducted on the Fuel LCA Model.
Reference Carbon Intensity for Fuels in the Liquid Class (g/MJ)
Reference Carbon Intensity for Fuels in the Gaseous Class (g/MJ)2022 2023 2024 2025 2026 2027 2028 2029 2030 and after
CGI 91.8 90.7 89.5 88.4 87.2 86.0 84.9 83.7 82.5
Proposed 89.2 89.2 87.9 86.6 85.3 84.0 82.7 81.4 80.1
Biogas, renewable natural gas or hydrogen Renewable propane
CGI 61.8 74.8
Proposed 67.8 75.42030 CBA CREDIT COMPARISON
Compliance CategoryCG I Analysis 
(Millions of credits )CG II Analysis 
(Millions of credits)
CC1 7 4
CC2 12 11
CC3 4 7
OtherEmerging technologies 2 8
Payment into designated fund 3 3
Total 28 34
6 Note: Some figures may not add up due to rounding•Considering the proposed CI reduction requirement of 14g/MJ in 2030, the annual reduction 
requirement is expected to increase by about 6 million credits compared to CG I Analysis:
–CG II analysis takes into account the updates in Fall 2021: no CI reduction requirement for light & heavy fuel oil 
as well as kerosene, exemption for diesel used in space heating
•Fewer CC1 credits due to elimination of methane and refinery process improvement pathways from the 
illustrative case
•CC3 credits are higher due to recognition of 2030 ZEV sales target for light -duty passenger vehicles 
and an adjustment to the residential charging phase -out schedule
•More Emerging Technologies credits will be required to comply with the proposed 14 g/MJ reduction 
requirement in 2030.