FAQ

What is the Clean Fuel Standard?

In November 2016, The Government of Canada announced it would begin consultations to develop a regulatory framework for a Clean Fuel Standard (CFS) with the aim of reducing Canada’s greenhouse gas (GHG) emissions through the increased use of lower carbon fuels and alternative technologies.

The objective of the proposed regulations is to achieve 30 Mt of annual reductions in GHG emissions by 2030.

While many Canadians support the goals of the CFS, the way in which it is applied may cause disproportionately negative outcomes for many Canadian businesses and employers. These costs will impact business’ operating expenses and competitiveness and be felt disproportionately depending on access to market ready fuels and technologies.

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How will the Clean Fuel Standard impact Canadian businesses?

Canadian businesses have proven to be leaders in reducing emissions at home, and are setting world-class benchmarks for environmental performance.

But the new Clean Fuel Standard (CFS), if implemented as proposed, will impact affordability well beyond increasing the cost of fuels. It will impact the cost of everyday goods and services and will raise the cost of inputs to Canadian manufacturing as well as the cost of getting goods to market.

These impacts are not well understood, because of the lack of publicly available analysis completed to date. Canadian businesses are calling on the government to work closely with industry to conduct a full review and economic analysis of the potential impact of the CFS before moving further forward.

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How will the Clean Fuel Standard impact Canadian households?

Canadian consumers set high standards for their household’s own environmental impact, and they expect businesses to do their part too.

But the new Clean Fuel Standard (CFS), if implemented as proposed, will have a wide-ranging impact on the affordability of household items—far beyond the CFS’ focus on cleaner fuel. The CFS will impact the cost of everyday goods. Every product that is transported to market will be more expensive. It will make goods more expensive to produce in Canada, leaving businesses with fewer resources to hire new workers.

These impacts are not well understood, because of the lack of publicly available analysis completed to date. Canadian businesses are calling on the government to work closely with industry to conduct a full review and economic analysis of the potential impact of the CFS before moving further forward.

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What is the timeline for introducing a Clean Fuel Standard?

The Government of Canada announced on November 25, 2016 that it would begin consultations to develop a regulatory framework for a Clean Fuel Standard (CFS) with the aim of reducing Canada’s greenhouse gas (GHG) emissions through the increased use of lower carbon fuels and alternative technologies.

In July 2018 the government announced revised timelines for the development of the CFS. The new timelines for the publication of proposed regulation for liquid fuels by spring 2019 and final regulations in 2020, with requirements coming into force by 2022. For gaseous and solid fuels proposed regulations are expected in fall 2020, final regulations in 2021 with requirements coming into force by 2023.

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Who is behind Fuelling Canada's Future?

Fuelling Canada’s Future is a membership supported initiative by Canadian Manufacturers and Exporters.

We are united in our support for government efforts to reduce GHG emissions, and we look forward to working with the government on solutions that will benefit both the environment and the economy.

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