Canada

The Clean Fuel Regulations increase incentives for the development and adoption of clean fuels, technologies, and processes. The regulations require liquid fossil fuel (gasoline and diesel) suppliers to gradually reduce the carbon intensity – or the amount of pollution – from the fuels they produce and sell for use in Canada. This is expected to lead to a decrease of approximately 15% (below 2016 levels) in the carbon intensity of gasoline and diesel used in Canada by 2030.

The regulations will deliver up to 26 million tonnes (Mt) of GHG emissions reductions in 2030. The measures include the Canadian government’s recent establishment of a $1.5 billion clean fuels fund which increases support for domestic production and adoption of low-carbon fuels, such as hydrogen and biofuels.

The Clean Fuel Regulations take a lifecycle approach, considering the emissions associated with all stages of fuel production and use - from extraction through processing, distribution, and end-use. Among other ways, compliance credits can be achieved by undertaking projects that reduce the lifecycle carbon intensity of liquid fossil fuels including CCUS.

Further information: Clean Fuel Regulations

The Canadian Net Zero Emissions Accountability Act delivers on the government’s commitment to legislate a target of net zero greenhouse gas emissions by 2050. The Act establishes a legally binding process to set five-year national emissions reduction targets for 2030, 2035, 2040 and 2045. It will help develop credible, science-based emissions reduction plans to achieve each target. The Act established an independent advisory body, the Net Zero Advisory Body to provide ongoing advice to the government. Under the scheme, emissions in excess of allowances will be charged at $65 per tonne of CO2e in 2023 and will increase by $15 per calendar year until 2030, resulting in an excess emissions charge of $170 per tonne of CO2e in 2030.

Further information: Canadian Net-Zero Emissions Accountability Act

The 2030 Emissions Reduction Plan is an ambitious roadmap that outlines a sector-by-sector path for Canada to reach its emissions reduction target of 40% below 2005 levels by 2030 and net zero emissions by 2050.

This includes developing a CCUS strategy and investment approaches, such as Carbon Contracts for Difference.

• Introducing an investment tax credit to incentivise the development and adoption of CCUS technology
• Investing CAD 194 million to expand the Industrial Energy Management System to support ISO 50001 certification, energy managers, cohort-based training, audits, and energy efficiency-focused retrofits for key small-to-moderate projects
• The plan includes projected emissions reductions from the oil and gas sector of 31% below 2005 levels, by 2030. It also projects emissions reductions from 39% below 2005 levels, by 2030 from heavy industries.
• The Climate Action and Awareness Fund is investing over CAD 200 million over five years to support projects that help build capacity and raise awareness to reduce Canada’s GHG emissions.
• The Canada Infrastructure Bank (CIB) was established to ensure that Canadians benefit from modern and sustainable infrastructure through partnerships between governments and the private sector. The government has allocated CAD 35 billion for the CIB to set out priority investment areas, which include green infrastructure (CAD 5 billion), public transit (CAD 5 billion) and clean power (CAD 5 billion)

Further information: 2030 Emissions Reduction Plan