October 27, 2026
The Canadian Biogas Association (CBA) is encouraged by the consideration given to renewable natural gas (RNG) in today’s draft publication of amendments to the Clean Fuel Regulations (CFR) but notes that further refinement to the draft measures to provide adequate support to the Canadian RNG sector.
The inclusion of a 1.4x credit multiplier for Canadian-made RNG is a positive signal, but the proposed measure only applies to RNG used as energy in a vehicle. This does not address the fact that all American-produced RNG coming into Canada from the US could benefit from the 45Z tax credit regardless of whether or not it is used in transport. The CBA is of the view that Environment and Climate Change Canada must expand eligibility for the credit multiplier to all Canadian RNG generating CFR credits, otherwise the amendment fails to provide a meaningful response to 45Z for RNG.
Further the CBA is concerned by the draft’s proposed changes to the CFR’s 10 per cent cap on gaseous-class credit use. The draft allocates half of the existing cap to credits generated by Canadian production. When combined with the 1.4x multiplier, this proposal reduces the amount of RNG that can participate in the regulation. It also means that less Canadian RNG than imported RNG can participate, which runs counter to the very intent of the amendment.
The CBA looks forward to continuing to work with government to ensure the final amendments better reflect current market realities for Canada’s RNG industry, and that these important changes to the Clean Fuel Regulations succeed in leveling the playing field for our domestic product.
“A credit multiplier would help Canada’s RNG sector compete if it were to apply to all domestic RNG production said Sarah Stadnyk, CBA Director of Policy and Communications. “At the same time, we recognize that there is more work to be done ahead of the final amendments.”
