Canada Proposes Up to 1.8x Credit Multipliers for Domestic Low-Carbon Fuels
Clean Fuel Regulations
Canada is preparing to pay domestic low-carbon fuel producers more for every unit they make, opening a measurable premium for fuel recovered from waste inside North America.
Environment and Climate Change Canada published draft amendments to the Clean Fuel Regulations in the Canada Gazette on 30 October 2026, proposing a credit multiplier for low-carbon fuels produced in Canada from North American feedstock. The package is open to a 75-day consultation.
Multipliers From 1.3x to 1.8x
The multipliers scale by fuel type. Sustainable aviation fuel earns the top rate at 1.8x, hydrogenation-derived renewable diesel at 1.5x, biodiesel and co-processed diesel at 1.4x, and ethanol and other liquid low-carbon fuels at 1.3x. Renewable natural gas and hydrogen sit at 1.4x.
To qualify, the feedstock must be harvested, produced, extracted or collected in North America, and the multiplier applies retroactively to credits created on or after 1 January 2026. ECCC estimates the change adds roughly 26.9 million credits to the market between 2026 and 2035.
Why the Multiplier Matters
A credit multiplier lifts the compliance value of domestic low-carbon fuel without changing its carbon intensity. That means a tonne of fuel recovered from waste in Canada now out-earns the same tonne imported from abroad, closing the competitiveness gap Canadian producers face against subsidized US supply under 45Z.
It is a direct signal to anyone holding a domestic waste stream: the recovered fuel you make from it is about to become more valuable.
Turn Domestic Waste Into Higher-Value Fuel
A credit multiplier is worth nothing without a plant producing the fuel. Klean Industries delivers tire pyrolysis facilities that turn end-of-life tires into domestic pyrolysis oil alongside recovered carbon black and steel, on a performance-guaranteed turnkey basis with KBR.
Our references include commercial-scale thermal conversion plants operating today, among them the commercial recovered carbon black plant in Poland. That is where guarantees on continuous running and consistent product quality are earned, not projected.
You can license the technology and run the asset yourself, or have KBR build it turnkey and hand over a proven plant. A feasibility study on your feedstock and the credit value it can unlock is the right first step.
Contact Klean Industries » GO.
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