Clean Fuel Standard

Last updated: 19 April 2021

The Government of Canada is developing a Clean Fuel Standard (CFS) with the goal of reducing the lifecycle CO2 intensity of fuels and energy used in the country. The regulations are intended to come into force in 2022 for liquid energy sources, (solid and gaseous sources were initially set to follow in 2023, however the policy was scaled back in 2020, in part reflecting planned increases to stringency of carbon pricing).


The objective of the CFS is to achieve 30 million tonnes of annual GHG emissions reductions by 2030, requiring emissions intensity reductions by fuels class. The policy is intended to stimulate cost-effective investments and innovation in low-carbon fuels.


The CFS is a market-based credit system. Among the credit creation opportunities included in the policy is carbon capture, utilisation and storage at industrial and oil and gas facilities.

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