Sulphur Credit Trading Re‑established to 2030

Summary#

These final rules, the Regulations Amending the Sulphur in Gasoline Regulations (SOR/2026-145), re‑enact a temporary credit trading system for gasoline sulphur until December 31, 2030. They let refiners and importers use or trade previously banked sulphur compliance units (SCUs) for the 2026–2030 compliance years and set some 2026‑specific filing and record‑keeping rules.

What it does#

• Re‑establishes the temporary sulphur compliance unit (SCU) trading system for the years 2026 to 2030 so eligible suppliers can generate, trade, bank, or use SCUs.
• Allows SCUs that were owned as of March 31, 2026 to be transferred into the re‑enacted trading system.
• Sets a 30‑day deadline for certain notices and filings that relate to the 2026 compliance year.
• Lets suppliers create SCUs for 2026 up to amounts reported for 2025 under the regulation’s reporting rules.
• Confirms that suppliers must keep the required books and records in Canada until December 31, 2036.
• Comes into force on the day it was registered (registered on June 22, 2026).

Who's affected#

• Primary impact: gasoline refiners and importers in Canada — often called primary suppliers under the Sulphur in Gasoline Regulations.
• Industry groups involved or cited: Canadian Fuels Association and Canadian Energy Marketers Association.
• Nearby communities, Indigenous groups, and environmental organizations may notice local air‑quality effects or took part in consultations (for example, The Three Fires Group/Chippewas of Kettle & Stony Point First Nation and the Métis National Council).
• Vehicle and engine manufacturers are indirectly affected because Canada’s sulphur rules link to vehicle emissions control performance.

Why it matters#

• It avoids an abrupt loss of a compliance tool that some refiners said they needed to manage unplanned outages or delays in upgrading equipment. That reduces the risk of short‑term refinery slowdowns and local fuel supply disruptions.
• Using banked credits can mean small, localized increases in sulphur in gasoline and associated emissions while the trading system is in effect. The government says these increases are expected to be limited and temporary.
• The change gives industry certainty through 2030 while the government evaluates longer‑term options (including whether to create a permanent trading system).