Initiative Agreements

The Initiative Agreement (IA) program supports the development of low carbon fuel projects. These agreements enable selected projects to contribute to long-term compliance pathways, helping to advance low carbon fuel supply and infrastructure while ensuring alignment with carbon intensity reduction targets.

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Low Carbon Fuel Standard Initiative Agreement program

The Initiative Agreement program is a component of British Columbia’s Low Carbon Fuel Standard (LCFS) that supports the development of low carbon fuel projects through the issuance of compliance units (Credits).

An Initiative Agreement is a formal agreement between an eligible project proponent and the statutory Director under the Low Carbon Fuels Act. These Agreements are structured to award credits based on the successful completion of major project milestones.

The program follows a performance-based approach. Instead of providing incentives up front, organizations receive credits as they achieve key project targets. This structure supports measurable progress and accountability while aligning with the objectives of the LCFS.

These credits are identical to other LCFS credits and can be used for compliance or traded to offset project costs.

Projects supported under Initiative Agreements

The program is not accepting new applications at this time.

The Initiative Agreement program has supported more than 40 projects, driving investments of over $2 billion in B.C.'s clean fuel production, infrastructure and supply chains while contributing to economic growth and job creation.

Current Initiative Agreements include projects that support clean fuel production, infrastructure development and emerging low carbon technologies. Some examples are:

• Biofuel Projects: Facilitating the production, supply, and uptake of low carbon liquid fuels to replace conventional fossil fuel
• Electrification of Transport Fleets: Encouraging the adoption of electric vehicles and vessels and charging infrastructure
• Hydrogen Infrastructure Projects: Developing hydrogen fueling stations and expanding hydrogen supply to support zero-emission transportation

For more information about projects supported by an Initiative Agreement, read RLCF-014: Projects supported under Initiative Agreements

History of the program

From 2014 to 2023, the program was called the Part 3 Agreement program. With the introduction of the new Low Carbon Fuels Act on January 1, 2024, the Part 3 Agreement program became the Initiative Agreement program.

Applications

The program is not accepting new applications at this time.

The IA program is being redesigned to align regulatory updates and enhance support for low carbon fuel projects. The Ministry is refining its structure to improve accessibility, transparency and impact.

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