Environment and Climate Change Canada has acknowledged that U.S. feedstocks are in compliances with the land use and biodiversity (LUB) criteria included under the country’s Clean Fuel Regulation, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network on Nov. 15. 

According to the report, the ECCC on Nov. 9 publicly announced that it has approved the U.S. application for legislative recognition, which demonstrates that U.S. feedstock is in compliance with the CFR’s LUB criteria. The acceptance of that application ensures that U.S. biodiesel and ethanol exports to Canada as well as U.S. biofuel feedstock exports to Canada will not be hindered under the CFR’s LUB criteria. The report explains that without legislative recognition, individual farmers or states would have had to provide their own compliance as of Jan. 1, 2024. 

By approving the U.S. application, the Canadian government has acknowledged that U.S. feedstocks are in compliance with the wildlife habitat and damaging agents sections of the LUB criteria and can generate credits under the CFR. The report explains that the U.S. application covers criteria for wildlife habitat and damaging agencies, such as pests, invasive species and disease. It does not, however, include aspects of the forestry sector at this time. The report indicates the USDA plans to submit a legislative recognition application for the forestry sector when it starts to be a tradeable need. 

Canada’s CFR became law in July 2022. The program requires liquid fossil fuel suppliers to gradually reduce the carbon intensity (CI) of the fuels they produce and sell for use in Canada, targeting a 15 percent reduction when compared to a 2016 baseline by 2030.

A full copy of the report is available on the USDA FAS GAIN website.