Canada's clean fuel increases RNG by 417% in one year

Canada’s Clean Fuel Regulation (CFR) has shifted the renewable natural gas market, with fuel registrations increasing by 417% in just one year. RNG was the fastest-growing clean fuel in the program, outpacing ethanol, biodiesel, and sustainable aviation fuel.

Fraser Valley Biogas - Abbotsford, BC

This surge reflects a new market dynamic. Utilities, vehicle fleets, and project developers are responding to regulatory requirements and financial incentives tied to carbon intensity (CI) scores.

RNG gets additional credit from avoided emissions of manure and organic waste management, making anaerobic digestion projects more financially viable.

Canada’s framework offers a double incentive. Fuels can be registered with both the federal CFR and British Columbia’s LCFS program. This stacking effect boosts the value of RNG credits and encourages rapid project buildout.

Developers report that the CFR has been a catalyst for investment, driving new project development and attracting institutional capital. Utilities have led early adoption, but corporate buyers are now entering the market. An indicator of long-term confidence in RNG as a decarbonization tool.

Canada is uniquely positioned to sustain long-term growth in RNG. The initial demand surge comes from transportation. Now Canada has heating fuel requirements.

1. FortisBC requires 1% RNG in all customer gas (since 2024).

2. Énergir requires 5% by 2025, 10% by 2030.

   
   

These mandates create stable demand signals and have already prompted 20-year offtake agreements between utilities and RNG producers.

Canada’s Clean Fuel Regulation is expected to remain a primary driver of RNG adoption, accelerating both supply and demand for renewable fuels.

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(Source: Waste Dive, "Canada's clean fuel programs sees 417% jump in RNG in 2024," 2025)

Canada’s clean fuel programs sees 417% jump in RNG in 2024 | Waste Dive