There are a number of policies and incentives to reduce greenhouse gas emissions in the transportation sector, such as: setting vehicle emission standards and improving fuel efficiency, using cleaner fuels through a renewable fuel standard, and deploying more zero emission vehicles.
A renewable fuel standard reduces greenhouse gas emissions from transportation fuels by requiring the fuel to contain a certain amount of renewable energy product (e.g., ethanol).
In December 2017, the federal government of Canada published a regulatory framework for a clean fuel standard as a way to reduce greenhouse gas emissions through increased use of lower-carbon fuels and the user of alternative technologies. The performance-based standard will offer a flexible approach to reduce greenhouse gas emissions by 30 metric megatons by 2030. The federal approach builds on the work of five provinces — Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan — that already have renewable fuel mandates equal to or greater than the current federal requirements. British Columbia also has a low-carbon fuel standard.