The Clean Electricity Regulations (CER), enacted on December 18, 2024, are the culmination of nearly three years of feedback from provinces, territories, Indigenous communities, and industry. Initially released in August 2023, the draft CER received significant pushback, particularly regarding the prohibition against electricity generation units emitting more than an annual average of 30 tonnes of carbon emissions per GWh  (t/GWh) of electricity generated. In response, the federal government updated the proposed CER in February 2024, introducing key changes such as unit-specific annual emission limits and the possibility of exceeding these limits through the remittance of offset credits.

Notably, the now-finalized CER pushed back the date to decarbonize electricity grids from 2035 to 2050.  The CER aims to achieve net-zero emissions by 2050, with interim emission intensity limits set for the period from 2035 to 2049. The regulations also permit the exclusion of emissions associated with the combustion of biomass and renewable natural gas, as well as emissions captured by carbon capture and storage projects and emissions generated during an emergency circumstance. A full discussion of the CER application, compliance mechanisms, registration and reporting requirements prepared by Kimberly J. Howard, Derek Baker and Gwenyth Wren can be found on our Canadian Energy Perspectives Blog.