Under the Paris Agreement, the Government of Canada committed to reducing Greenhouse Gas (GHG) emissions by 30% below 2005 levels by 2030.

Initiatives that encourage cleaner burning fuels for power generation and transportation in Canada:


Quebec is a member of the Western Climate Initiative, participating in a carbon emissions trading system (Cap&Trade) with California. British Columbia has a Low Carbon Fuel Standard, and other provinces have implemented similar carbon abatement mechanisms in order to meet the Federal Government’s carbon tax schedule which will peak at $170 / tonne CO2e by 2030. The Government of Canada has finalized the Clean Fuel Regulations (CFR), providing financial incentives for clean fuel station and truck fleet owners to shift to lower carbon energy sources.


In January 2020, the International Maritime Organization (IMO) marine fuel sulfur content regulations will come into force for marine vessels operating off Canada’s coasts, in the St. Lawrence and the Great Lakes. The regulations will require vessels burning marine fuels with a MAX 0.5% sulfur content. This regulation will have an effect on supply & demand for Heavy Fuel Oil and Ultra Low Sulfur Diesel (ULSD), creating price/supply volatility risk for those higher carbon content fuels.

Natural gas is a non-toxic clean burning fuel that when combusted, emits 20-30% less CO2, up to 85% less NOX and virtually eliminates SOX and particulate matter as compared to traditional fossil fuels such as diesel. When sources from organic matter producing biogas, sustainable Renewable Natural Gas (RNG) can reduce emissions by up to 100 % compared to traditional fossil fuels.

North America’s reserves of natural gas are sufficient to meet the needs of industry and transportation for many decades. The benefit of domestic sources is the elimination of reliance on foreign suppliers, many based in politically unstable nations, which drastically reduces volatility risk.

The displacement of Heavy Fuel Oil, Diesel and other higher carbon content fuels in industry and transportation with natural gas is the cornerstone of Distributed Gas Solutions Canada’s business activities.