Renewable and Low Carbon Fuels

Update to Renewable Fuel Requirements

On February 27, 2025, the Government of British Columbia announced updates to the renewable fuel requirements under the Low Carbon Fuels Act, including:

• Beginning January 1, 2026 the minimum 5% renewable fuel requirement for gasoline must be met with eligible renewable fuels produced in Canada

• The renewable fuel requirement for diesel has been increased from 4% to 8%. This change is effective in the 2025 compliance period and for subsequent compliance periods

• Beginning April 1, 2025 the minimum 8% renewable fuel requirement for diesel must be met with eligible renewable fuels produced in Canada

There are no changes to the renewable fuel requirements for the 2024 compliance period, and there are no changes to the renewable fuel requirements for jet fuel.

More information is available at BC Gov News.

Low Carbon Fuel Standard

Effective January 1, 2024, the Low Carbon Fuels Act replaced the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act. The Low Carbon Fuels Act and its regulations are together known as British Columbia’s Low Carbon Fuel Standard (LCFS). 

As a market transformation policy, the LCFS creates a financial incentive to reward the use of low carbon fuels in proportion to the amount of measurable greenhouse gas reductions they yield when substituted for conventional fuels.

Since 2010, the LCFS has been advancing the Province’s goal of a low-carbon future. The LCFS:

• Drives innovation
• Reduces emissions
• Increases low carbon fuel availability
• Powers energy efficient strategies
• Signals investors to market the fuels of the future

Information about leveraging the LCFS is available on the Credit Market page.

Information about the Low Carbon Fuels Act, its amendments and regulations are available at https://www.bclaws.gov.bc.ca/.

• Find more information on B.C.’s clean energy policies and programs

Low Carbon Fuels (General) Regulation 

The Low Carbon Fuels (General) Regulation under the Low Carbon Fuels Act implements similar provisions to the Renewable and Low Carbon Fuel Requirements Regulation, with some notable new requirements, including:

• Renewable and low carbon jet fuel requirements
• Prescribed fuel use in ground support equipment, cargo handling equipment and forklifts in addition to transportation
• New provisions for determining discretionary penalties and updated maximum penalties
• A volumetric exclusion for electricity

Low Carbon Fuels (Technical) Regulation 

The Low Carbon Fuels (Technical) Regulation implements the technical details of the Low Carbon Fuels Act. The new regulation contains many similar provisions to the Renewable and Low Carbon Fuel Requirements Regulation, including:

• Fuel eligibility
• Labelling requirements
• Requirements for determining the carbon intensity of a fuel
• Variables to be used in the compliance unit formula
• Compliance reporting requirements