QUESTION PERIOD — Environment and Climate Change
Clean Fuel Regulations
December 10, 2025
Senator Moreau, canola producers have waited patiently for new market opportunities. Canada’s Clean Fuel Regulations require primary suppliers of gasoline and diesel to reduce the carbon intensity of the fuels that they produce and import.
Compliance credits can be created by supplying low-carbon intensity fuels, for example, ethanol, biodiesel and renewable diesel, which can use canola and other grains as feedstock.
In 2024, 23% of the feedstock used to create renewable diesel was used cooking oil, or UCO. However, investigations from the United States and the EU suggest that UCO, largely sourced from Asia, might contain virgin palm oil. The EU has recently adopted stricter import conditions for UCOs that are destined for biofuel production, and the U.S. has made policy changes as well.
Senator Moreau, will the government amend the Clean Fuel Regulations to prevent import of UCO-based biofuel from collecting biofuel credits?
Thank you. As you may be aware, Senator Lewis, on September 5, 2025, the Government of Canada announced its intent to make targeted amendments to the Clean Fuel Regulations, or CFR, to strengthen the resiliency and support of the development of Canada’s low-carbon fuel sector while maintaining the regulations primarily focused on lowering greenhouse gas emissions and transitioning to a low-carbon economy.
As a next step in the government’s commitment to further examine concerns raised about potential compliance risks related to imported low-carbon fuel feedstock used for CFR, including used cooking oil, the government will assess the verification and certification requirements in other jurisdictions as well as best practices regarding traceability, tracking and data management across the feedstock supply chain.
Thanks for that, Senator Moreau.
Canola producers find it extremely frustrating that, on one hand, the Government of China has banned canola imports and, on the other hand, the Government of Canada is allowing the import of used cooking oil mostly sourced from China to compete against domestically produced canola. Will you please let the government know that canola producers stand ready to supply Canadian consumers with a Canadian-sourced product?
I certainly will. I understand. Perhaps you know that Environment and Climate Change Canada welcomes input on other actions or steps relating to the treatment of imported low-carbon fuel feedstock, including UCO. The next steps required to accomplish these goals are being informed by ongoing consultations, which will close on January 15, 2026.
