The proposed Regulations Amending the Vessel Pollution and Dangerous Chemicals Regulations (Part 2, Division 1 — Oil) and the Administrative Monetary Penalties and Notices (CSA 2001) Regulations would bring Canada’s domestic marine pollution rules into alignment with international standards that prohibit the use and carriage of heavy fuel oil (HFO) as fuel in Arctic and Antarctic waters.

Heavy fuel oil has traditionally been used by large commercial vessels because it is less expensive than alternatives such as marine diesel, marine gas oil, or liquefied natural gas. However, its high sulphur content and tendency to remain trapped in ice or accumulate on shorelines make it particularly hazardous in polar regions. Oil residues can coat marine mammals, birds, and plants, while aquatic organisms may ingest contaminated material, creating long-term ecological damage that is difficult to reverse. These risks prompted the International Maritime Organization (IMO) to adopt amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL), banning the use and carriage of HFO as fuel in Antarctic waters beginning in 2011 and in Arctic waters beginning in 2024.

Canada already applies the Arctic prohibition through temporary interim orders issued under the Canada Shipping Act, 2001, but those measures are limited in duration and must be replaced by permanent regulations. The proposed amendments would formally incorporate the international requirements into Canadian law, ensuring that Canadian-flagged vessels operating anywhere in the world and foreign vessels operating in Canadian Arctic waters are subject to consistent and enforceable standards.

The proposal recognizes that some Arctic shipping operations require a gradual transition. Vessels equipped with protected double-hulled fuel tanks would continue to benefit from an internationally agreed automatic exception until July 1, 2029, reflecting their reduced risk of fuel spills following collisions or groundings. Eighteen Canadian vessels, including cargo ships, tankers, and a bulk carrier, fall under this temporary exemption.

Several operational flexibilities are included in the proposal. Vessels engaged in emergency operations, such as saving lives, ensuring vessel safety, or preventing immediate vessel loss, would not be subject to the prohibition during those activities. Operators would also not be required to flush fuel tanks or pipelines after discharging HFO, avoiding unnecessary handling that could increase the risk of accidental spills.

To strengthen enforcement, the proposal would amend the Administrative Monetary Penalties and Notices Regulations by designating four new HFO-related violations that could result in administrative monetary penalties ranging from $1,250 for minor offences to $25,000 for more serious breaches. This provides regulators with a flexible compliance tool that complements existing enforcement powers.

Canada (Draft) June 23, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.