Question Period Note: Clean Fuel Regulations

The Prime Minister announced Environment and Climate Change Canada will make targeted amendments to the Clean Fuel Regulations which will continue to advance emissions reductions and the transition to a lower-carbon economy while better supporting domestic biofuel producers.

• The Clean Fuel Regulations reduce air pollution and greenhouse gas emissions, and have been the driver for billions of dollars of new investments in clean fuel production in Canada.
• The Government is making targeted changes to those regulations to support domestic supplies of biofuel.
• Creating more demand for Canadian biofuel will support our canola farmers, whose crops are the main feedstock to make low carbon diesel.
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• These changes will complement Canada’s new Biofuel Production Incentive.

• The Clean Fuel Regulations (CFR) require producers and importers of gasoline and diesel used in Canada to reduce the carbon intensity of these fuels by, for example, supplying low carbon fuels.

• The CFR is expected to cut greenhouse gas pollution across the country by up to 26 million tonnes in 2030.

• On September 5, 2025, the Government announced a new set of measures to support industries impacted by recent global trade pressures—including the biofuel sector.

• As part of the suite of actions taken, targeted amendments to the Clean Fuel Regulations will be undertaken to support domestic biofuel producers, who are disadvantaged by US biofuel policies / subsidies, while continuing to advance emission reductions and the transition to a lower-carbon economy.

• In parallel, the Government also announced the Biofuels Production Incentive - a time-limited program led by Natural Resources Canada that will provide over $370 million over two years to support the stability and resiliency of domestic producers of biodiesel and renewable diesel, and their Canadian value chains, including Canada’s agricultural sector like canola producers. This incentive will provide a per litre subsidy to Canadian producers of biodiesel and renewable diesel.

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