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 car emission systems. Some refineries can't consistently hit the 10 parts-per-million target, 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

This is mostly an industry issue, but it could affect you indirectly. If refineries can't meet sulphur limits, they might cut production—potentially raising gas prices or causing shortages in some regions. The Métis National Council has raised concerns about higher sulphur emissions near refineries affecting Indigenous communities.

What Could Change

The sulphur credit trading system would continue until 2030. Refineries could keep using banked credits to offset temporary exceedances. This means slightly higher sulphur emissions in the short term, but the government says these will diminish over time. A permanent trading system is being considered as part of a broader fuel regulation overhaul.

Key Issues

  • Should the temporary sulphur credit trading system be extended from 2026 to 2030?
  • Should refineries be allowed to transfer credits accumulated under the expired system into the new one?
  • Are the potential air quality impacts acceptable while a permanent solution is developed?

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