Renewable & Low Carbon Fuel Requirements Regulation

Low Carbon Fuel Standard

The Greenhouse Gas Reduction (Renewable & Low Carbon Fuel Requirements) Act and the Renewable & Low Carbon Fuel Requirements Regulation, known collectively as British Columbia’s low carbon fuel standard (LCFS), was introduced to reduce the carbon intensity (CI) of fuels used in the province.

  • The LCFS sets CI targets that decline each year.
  • Fuel suppliers generate credits for supplying fuels with a CI below the targets and receive debits for supplying fuels with a CI above the targets.
  • The debits and credits are proportional to the emissions a fuel generates over its full life cycle.
  • Credits can be traded between fuel suppliers or banked for future use. 
  • At the end of each compliance period, suppliers must have a balance of zero or more credits to avoid non-compliance penalties.

The credit market creates a financial incentive to reward low-carbon fuels in proportion to the amount of real, measurable emissions reductions they yield when substituted for conventional fuels. This generates revenue for low carbon transportation fuel suppliers and supports investment in clean fuels and vehicles. Visit Credit Market for more information.

Renewable and Low Carbon Fuel Requirements Regulation Amendment - Update

Effective January 1, 2023, the Renewable and Low Carbon Fuel Requirements Regulation under the current Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act (Act) has been amended to:

  1. Increase the carbon intensity reduction requirement from 20% to 30% by 2030 in the gasoline and diesel fuel pools.  The proposed carbon intensity reduction schedule will linearly increase the target each year from 2023 to 2030 to reach 30% by 2030. 
  2. Increase the penalty rate for non-compliance with the carbon intensity requirements of the Act from $200 per tonne to $600 per tonne. 

For more information visit: New carbon-reduction requirements lower emissions on the road.

Low Carbon Fuels Act - Update

The Government of British Columbia passed the new Low Carbon Fuels Act (New Act) in Spring 2022 to replace the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act (Act).  The proposed regulations (new Regulations) under the New Act are expected to be introduced in 2023 to align with a New Act in-force date of January 1, 2024.

The Ministry will continue to develop new Regulations under the New Act for approval in 2023, providing stakeholders with clarity regarding the changes that would come into force on January 1, 2024.