Standards for Low Carbon Fuel
The Government of Québec issued an Order in Council O.C. 1367-2025 which formally enacts amendments to the Regulation respecting the integration of low-carbon-intensity fuel content into gasoline and diesel fuel under the Petroleum Products Act. The regulation builds on the government’s authority to set standards for petroleum products, including requirements regarding their composition and environmental impact, and to establish mechanisms to promote compliance through credit systems. It also relies on provisions enabling the transmission of information and record-keeping requirements for regulated entities, and it reflects a joint recommendation from the Ministers of Economy, Innovation and Energy, and Environment, the Fight Against Climate Change, Wildlife and Parks.
The amended regulation updates the definitions of diesel and gasoline by referencing the Petroleum Products Regulation rather than the Canadian General Standards Board (CGSB) standards previously used. This change simplifies the regulatory framework by aligning it with a single provincial standard and removing references to specific grades of gasoline and diesel defined in older CGSB documents. In addition, the definition of premium gasoline has been simplified, removing reliance on CGSB standards, to improve compliance and reporting.
The regulation establishes progressively increasing minimum percentages of low-carbon-intensity fuel content in both gasoline and diesel distributed in Québec. For gasoline, the minimum content is set at 10% for 2023 and 2024, rising to 12% for 2025 through 2027, 14% for 2028 and 2029, and 15% from 2030 onward. Diesel fuel targets start at 3% for 2023 and 2024, increase to 5% for 2025 through 2029, and reach 10% from 2030. These requirements are to be verified using measurement methods and tools determined by the Minister, ensuring consistent monitoring and enforcement. The phased increases aim to support gradual decarbonization of the province’s fuel supply and contribute to broader climate objectives.
Amendments also refine reporting and compliance procedures, providing clarity on periods covered by reports and credit accounting. References to “calendar year” have been updated to accommodate different reporting periods, reflecting flexibility in compliance timelines. Changes to sections covering the use, carryover, and reporting of credits ensure that distributors can meet obligations while accurately documenting low-carbon content integration.
By updating standards references, defining precise minimum content requirements, and clarifying reporting and credit mechanisms, the regulation improves both enforceability and predictability for distributors. The regulation is expected to guide the industry through a structured, incremental transition toward low-carbon fuel adoption while maintaining compliance oversight and supporting the province’s climate commitments.
Quebec (1367/2025) December 2, 2025
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.
