Clean Fuels Fund

Canada’s economy will need to be powered by clean power and clean fuels to meet its goal of net-zero emissions by 2050

Fuelling the future

Recognizing the essential role of clean fuels, Canada’s Strengthened Climate plan includes broad economic policies, such as the proposed Clean Fuel Standard (CFS), increases to the carbon pollution price, the Hydrogen Strategy for Canada, and investments to grow the clean fuels market.

This commitment was re-affirmed in Budget 2021 with an investment of $1.5 billion over five years to establish a Clean Fuels Fund, to de-risk the capital investment required to build new or expand existing clean fuel production facilities (including facility conversions). Support is also available for feasibility and front-end engineering and design (FEED) studies, and the establishment of biomass supply chains to improve logistics for the collection, supply, and distribution of biomass materials (e.g., forest residues, municipal solid waste, and agriculture crop residues) as a feedstock in clean fuel production facilities. Resources are also available to address gaps and misalignment in codes, standards and regulations related to the production, distribution and end-use of clean fuels.