Canada's Clean Fuel Regulations have created a fast-growing compliance credit market, with credit prices climbing from $216.65 in Q3 2025 to $358.18 by June 2026. But carbon dioxide removal (CDR) technologies like BECCS are not eligible to generate credits, leaving Canadian CDR projects without access to this key revenue stream. The article explains the competitive imbalance with the U.S., where CDR projects can capture value, and outlines why industry is pushing for inclusion in the federal market. ECCC has published a discussion paper on targeted amendments, signaling potential reform. Expanding eligibility to verified CDR credits could create a domestic revenue stream, increase credit supply, and align regulations with Canada's net-zero goals. Businesses in carbon removal and clean energy should monitor consultations and assess how expanded credit eligibility might affect project economics and carbon strategies.
