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Clean fuels – fueling the future

Canada is committed to reducing its carbon emissions by 40 to 45 percent below 2005 levels by 2030, and achieving net-zero by 2050.  A Healthy Environment and a Healthy Economy, the federal government’s recently announced strengthened climate plan, lays out its work to date and its commitments to cutting emissions through sustainable innovation.

To meet our new 2030 and 2050 net-zero goals, Canada’s economy will need to be powered by two equally important energy sources – clean power and clean fuels. Electrification – clean power - provides a near-term pathway for emissions reductions in many sectors including personal transport and the built environment. But clean fuels (low-carbon fuels that typically consist of clean hydrogen, advanced biofuels, liquid synthetic fuels, and renewable natural gas) are expected to play a critical role in ‘hard-to-decarbonize’ sectors such as industry and medium- and heavy-duty freight.

Even in a scenario with ambitious electrification, it is estimated that 60 percent or more of national energy demand in 2050 could need to be met with clean fuels to meet a net-zero goal. Today, clean fuels make up less than five percent of total energy supply in Canada.

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

What are clean fuels?

Clean fuels are fuels that produce much lower greenhouse gas emissions than traditional fuels on a life-cycle basis. Growing Canada’s clean fuels market will help reduce our carbon footprint cutting emissions from hard to abate sectors, create jobs and stimulate private sector investments.

There are many types of clean fuels, including biofuels such as cellulosic ethanol, renewable diesel, synthetic fuels and sustainable aviation fuel, as well as gaseous fuels such as clean hydrogen and renewable natural gas. Clean fuels are produced from a variety of feedstocks, such as agricultural and forest biomass, waste materials, electricity, and fossil fuels with carbon capture and storage. Clean fuels can be used to power our transportation and industrial sectors, support Canada’s conventional energy sector in the low-carbon transition and secure a greener future.

Reducing harmful greenhouse gas emissions, and building a sustainable, low-carbon future starts here

Why are clean fuels important for Canada’s energy future?

Canada’s net-zero future will be powered by two equally important pathways, clean power and clean fuels. Together, they will drive emissions reductions and help fuel Canada’s energy transition.

Producing and using clean fuels will help with national and international efforts to mitigate climate change. Canada is well-positioned to expand its clean fuels production and usage. In doing so, Canada’s shift to a cleaner economy will:

  • ensure a strong energy sector
  • decrease greenhouse gas emissions
  • support energy security
  • drive job creation by increasing domestic and international investments in Canada’s clean fuels market

Fueling the future with clean fuels

Clean Fuels Fund

With a $1.5 billion investment over five years, the Clean Fuels Fund offers new opportunities to fuel Canada’s transition to clean energy. The Clean Fuels Fund will help Canadian companies produce clean fuels, create up to 36,000 new jobs by 2030 and enable the reduction of greenhouse gas emissions.

Explore the Clean Fuels Fund

Together, we can move toward a clean and sustainable future

Video Transcript

Canada’s net-zero future will be powered by clean power and clean fuels.

We are on our way.

More than 80% of Canada’s electricity comes from clean sources.

Clean fuels like biofuels and hydrogen make up 5% of Canada’s energy supply today but they could make up nearly 60% by 2050.

Producing and using more clean fuels in Canada will help decarbonize transportation and industries like steel and cement making all while keeping energy jobs in Canada.

That’s why the Government of Canada is launching the Clean Fuels Fund

Helping Canada remain an energy supplier of choice in a low-carbon future.

Find out more –

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