Should Canada Require More Domestic Content in Low-Carbon Fuels?

Official title: Targeted amendments to the Clean Fuel Regulations

Open Regulations & Permits Economy & Jobs Environment & Climate Natural Resources
Canadian biofuel producers are struggling to compete with imports, especially from the US. The government wants to change the Clean Fuel Regulations to boost domestic production. Two options are on the table: requiring a minimum amount of Canadian content, or giving extra credits for using domestic fuels.

Why This Matters

Fill up your car lately? The fuel you buy increasingly comes from abroad. If Canadian biofuel plants close, we lose jobs in agriculture and manufacturing. Canola farmers could see demand drop. And relying more on US imports makes us vulnerable to trade disputes.

What Could Change

New rules could require fuel suppliers to use a minimum percentage of Canadian-made biofuels. Alternatively, companies could earn bonus credits for choosing domestic fuels over imports. Either way, this would reshape the biofuel market and could affect fuel prices.

Key Issues

  • Should Canada require a minimum amount of domestic content in low-carbon fuels?
  • Should companies get extra credits for using Canadian-made biofuels instead of imports?
  • How should Canada verify that imported feedstocks like used cooking oil are legitimate?

How to Participate

  1. Read the discussion paper to understand the two regulatory options being considered.
  2. Email your feedback to cfsncp@ec.gc.ca by January 15, 2026.

Submit Your Input

Questions Being Asked (4)
  1. What are your views on the minimum domestic content approach?
  2. What are your views on the credit multiplier approach?
  3. Are there other regulatory design options that should be considered?
  4. What actions or steps should be taken regarding the treatment of imported low carbon fuel feedstocks, including used cooking oil?