The Clean Fuel Regulations (the Regulations) require regulated parties (producers and importers of gasoline or diesel) to reduce the lifecycle carbon intensity of the gasoline or diesel they produce or import for use in Canada. To achieve this, the Regulations establish annual lifecycle carbon intensity limits for gasoline and diesel in grams of carbon dioxide equivalent emitted per unit of energy (expressed as grams per megajoule or gCO2e/MJ). The annual lifecycle carbon intensity limits came into force on July 1, 2023 and gradually decreases until 2030. The Regulations establish a credit market as the primary compliance mechanism. Each credit represents a lifecycle emission reduction of one tonne of CO2e. For each compliance period, a regulated party must create or acquire sufficient credits and use them to demonstrate compliance with its annual reduction requirements. Credits are created for the following categories of actions: Category 1: Emission reduction projects along the fuel lifecycle (e.g. carbon capture and permanent storage, low-carbon intensity electricity, co-processing at refineries); Category 2: Supply of low-carbon fuels for use in Canada (e.g. ethanol, biodiesel, hydrogenation derived renewable diesel, renewable natural gas or renewable propane); Category 3: Supplying fuel and energy in advanced vehicle technologies (e.g. electricity and hydrogen) The proposed Regulations Amending the Clean Fuel Regulations (the proposed Amendments) would introduce a…