Proposed changes to Clean Fuel Regulations fall short, say canola industry groups

"However, the Canola Council of Canada, Canadian Canola Growers Association and Canadian Oilseed Processors Association say the changes proposed in a discussion paper from Environment and Climate Change Canada (ECCC) contained "no specific provisions to support increased use of canola and other domestic feedstocks in the Canadian biofuels market." They also still have concerns about potential compliance risks with imported used cooking oil (UCO.)"

"Regulatory measures to support domestic biofuel production must include a condition that only fuels made from domestic or North American feedstock are eligible for these supports. Regulatory measures must provide a strong market signal that expands domestic biofuel production volumes, resulting in increased demand for local feedstock. Risks associated with fuels made from potentially fraudulent foreign UCO entering the Canadian clean fuels market must be addressed without delay."

"The tariff support package announced by the Carney government in September 2025 included a commitment to update the CFR to support domestic biofuel production. ECCC's comment period for the discussion paper closed earlier this month. Draft amendments, based on feedback on the discussion paper, will be published in Canada Gazette, Part I before they are finalized. The government has said it plans to move quickly to develop and implement the amendments."

The Carney government’s tariff support package included a commitment to update the Clean Fuel Regulations (CFR) to support domestic biofuel production. Environment and Climate Change Canada released a discussion paper proposing changes, but canola industry groups say the proposals contain no specific provisions to increase use of canola or other domestic feedstocks. Industry groups retain concerns about compliance risks tied to imported used cooking oil (UCO). The groups demand CFR measures that restrict support to domestic or North American feedstock, create strong market signals to expand domestic biofuel volumes and promptly address risks from potentially fraudulent foreign UCO. ECCC closed its comment period and plans to publish draft amendments in the Canada Gazette, Part I.

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