Canadian Clean Fuel Regulation (CFR)
The CFR is a federal policy that aims to reduce greenhouse gas (GHG) emissions associated with the production and use of fuels in Canada. It is a key component of the Pan-Canadian Framework on Clean Growth and Climate Change.
The CFR sets carbon intensity reduction requirements for liquid fossil fuels, gaseous fuels, and solid fossil fuels. Carbon intensity is measured in grams of carbon dioxide equivalent (gCO2e) per unit of energy produced or consumed. The regulation establishes annual reduction targets for carbon intensity, which gradually become more stringent over time.
Under the CFR, fuel suppliers, producers, and importers must meet the carbon intensity reduction targets. They can achieve compliance by reducing their fuel's carbon intensity or obtaining compliance credits.
The Credit program is an integral part of the CFR and provides a mechanism for fuel suppliers to comply with the regulation. It allows them to earn and trade compliance credits generated by producing or supplying low-carbon fuels.
The CFR credits are awarded based on the carbon intensity performance of the fuel compared to the regulatory requirements. Fuels with carbon intensities below the standard generate credits, while fuels above the standard require using credits for compliance. The credits can be traded within a credit market, enabling flexibility for fuel suppliers to meet their obligations efficiently.
How to Generate Carbon Credits with Your Zero-Emission Vehicle Fleet
The Canadian Clean Fuel Regulation (CFR) program recognizes electricity as a low-carbon fuel that can displace diesel or gasoline. Smart charging stations across Canada can generate credits by providing electricity for transportation purposes. These stations can charge various vehicles, including electric passenger vehicles, heavy-duty electric vehicles, certain material-handling equipment, and electric vessels.
For businesses and organizations in Canada, hosting electric vehicle (EV) charging stations is a primary pathway to creating CFR credits. If your organization owns or leases EV charging stations primarily used for fleet vehicles (excluding residential or public use), you are likely eligible to generate credits. Alternatively, you may also qualify if you are a network operator of public or residential EV charging stations.
The number of credits your business generates can increase as you use more electricity to replace conventional transportation fuels. For every 1.4 megawatt-hours (MWh) of qualifying electricity usage, you can earn over 1 credit. However, it's important to follow the specific rules and regulations set forth by the government when generating carbon credits. Participation eligibility varies based on these guidelines, but following a step-by-step approach simplifies the process.
The chart below shows the pathway to credit generation through the CFR program.
How to Get Started
If your company is contemplating the adoption of electric vehicles or has already electrified its fleet, participating in the increasingly accessible carbon markets can prove highly beneficial for both the environment and your business's financial bottom line. Our team of experts is dedicated to simplifying the process of generating a revenue stream from EV charging infrastructure, empowering you to positively impact the planet while reaping the rewards of this program.
EquiCharge offers a simple and fast onboarding process to help you start collecting credits today. Our experts manage the technical details and analysis to collect and trade credits and leave you with the revenue to continue growing your sustainable business.
Contact Us today to learn more about how to start collecting CFR Credits or begin your electrification journey.