Should Gasoline Refiners Keep Trading Sulphur Credits Until 2030?

Official title: Proposed Regulations Amending the Sulphur in Gasoline Regulations

Open Regulations & Permits Environment & Climate Natural Resources
Canada limits how much sulphur can be in gasoline—it causes air pollution and damages vehicle emission systems. Some refineries can't consistently meet the 10 parts-per-million limit, so they've been trading credits with cleaner producers. That system expires at the end of 2025. The government wants to extend it until 2030 while it figures out a permanent solution.

Why This Matters

Drive a car? The sulphur in your gas affects air quality and how well your vehicle's emission controls work. This decision won't change pump prices much, but it does affect how quickly Canada cleans up its fuel supply. Indigenous communities near refineries have raised health concerns about allowing higher sulphur levels to continue.

What Could Change

If approved, refineries that can't meet the 10 ppm sulphur limit could keep buying credits from cleaner producers until 2030. Without this extension, some refineries might have to cut production, potentially affecting fuel availability in certain regions. The government is also working on a permanent credit system as part of a broader fuel regulation overhaul.

Key Issues

  • Should the temporary sulphur credit trading system be extended from 2026 to 2030?
  • Should refiners be allowed to transfer credits accumulated under the expired system into the new one?
  • Are the potential air quality impacts acceptable while industry transitions to lower-sulphur production?

How to Participate

  1. Review the proposed regulations in the Canada Gazette to understand the changes being proposed.
  2. Submit your comments by email to fuels-carburants@ec.gc.ca by the deadline.

Submit Your Input

Draft Email

Key Documents