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Did you know that your EV charging infrastructure can generate income?

Canada’s Clean Fuel Regulations (CFR) was designed to drive net-zero goals by accelerating the switch to cleaner fuels in transportation. The CFR operates like a ‘cap-and-trade’ system, which is an environmental policy tool that sets a limit (cap) on emissions and allows companies to sell (trade) permits to emit a certain amount. Companies that reduce their emissions can sell their extra permits to others, creating a financial incentive to lower emissions over time. Additionally the price of the credits is goverened by the market forces of supply and demand. 

What is Capped and What is Traded?

The CFR sets carbon emission intensity reduction targets on fuel suppliers, which becomes stricter over time. By 2030, the target amounts to a 15% reduction from 2016 levels. These “capped” carbon intensity targets are measured in grams of CO2 equivalent (CO2e) emitted per megajoules (MJ) of fuel combustion.

Source:https://www.canada.ca/en/environment-climate-change/services/managing-pollution/energy-production/fuel-regulations/clean-fuel-regulations/about.html

To comply with the annual caps on CO2 emitted per MJ of fuel, companies can either:

(I) reduce their emissions or

(II) buy compliance credits from low-carbon fuel suppliers.

Each credit represents one tonne of emissions and is listed on the federal compliance credit system. These credits are then “traded” between the fuel suppliers, with the prices of the credits determined by market supply and demand with a maximum price ceiling set by the government.

Generating Compliance Credits

CFR provides three pathways to generate compliance credits:

  1. Reducing life cycle emissions of traditional fuels through methods like carbon capture, utilization, and storage (CCUS) and renewable electricity. It can also include producing co-processed low-carbon fuels that replace traditional liquid or gas fuels.
  2. Developing and supplying low-carbon fuels such as renewable natural gas (RNG) and biodiesel.

  3. Advancing vehicle technology by supplying fuel or energy for electric vehicles (EVs).

      While the first two categories deserve a deep dive on its own, it is the 3rd category that EV credits fall into: Advancing vehicle technology.

       Two entities can claim credits through EV charging infrastructure:  

      1. Charging Network Operators: Any entity that makes the chargers available to the public. As a network operator, they operate the charging stations and collect the charging data. The charging network operator must use the revenue from selling credits to re-invest it back into developing and maintaining EV charging infrastructure or putting in place financial incentives to buy or purchase vehicles.  Some examples are Flo and ChargePoint.

      2. Charging Station Owners: Any other entity that is not a charging network operator can be a charging station host or owner. A site host for EV charging is responsible for the physical location of a charging station and the infrastructure necessary to support it. For CFR credits, the site host owns or leases the property, may own, or lease the charging stations, and has the legal right to have the charging station installed. For charging station owners there is no restriction on the use of revenue generated by the credits. Some examples are universities, restaurants and businesses with public chargers.

      Now that we know who can generate the credits, let us examine the most important thing – How much are they worth?

      They are worth ~200 CAD in Ontario and 400 CAD in BC. Why more in BC? The BC credits tap into both, the provincial Low Carbon Fuel Standard (LCFS system) and the federal CFR system. The price also depends on the supply and demand dynamics of the market as well as macroeconomic factors like inflation and carbon tax.

      Generating Revenue from Carbon Credits

      The steps to generating revenue from EV charging credits are detailed and time-consuming, involving several stages from registration, verification, and reporting to actual selling of the credits.

      How we can help

      Let us bring our expertise to help you with your sustainability goals; from procuring EV chargers and EVs to generating and selling EV credits, we are here for you!

      Book a 15-minute, no-obligation discovery call to explore how we can help you make the most out of your decarbonization efforts and CFR credits.

      Jeff Garcia-Seminario

      Associate • Toronto
      Jeff brings global experience in leading corporate social responsibility (CSR) and community engagement projects in the extractive sector.   Jeff excels in stakeholder mapping, community engagement, and conflict resolution.   Applying his private and public sector experiences, Jeff can bridge cultural and historical divides between extractive industries and their communities.  His areas of focus include food security, sustainable procurement, and good governance. Most recently, Jeff contributed to the development of an ESG strategy for a multi-national company.  
      Jeff’s native language is Spanish. He enjoys morning runs in the neighboring parks. 

      Kaitlyn D'Lima

      Associate

      Kaitlyn D’Lima holds both a Bachelor of Business Administration and a Master of Science and Sustainability Management degree from the University of Toronto.   She is also trained in greenhouse gas (GHG) accounting.

      She brings extensive experience in sustainability and business transformational projects. She is known for her ability to execute projects of any size with both urgency and accuracy.   Kaitlyn has a natural talent for improving stakeholder engagement. She’s a real trailblazer when it comes to benchmarking and research.

      Kaitlyn is a runner who participates in outdoor adventure races.

      Arun Balu Pazhayannur

      Advisor

      Arun B Pazhayannur holds a degree in mechanical engineering and is a Chartered Accountant. He also has an MBA from the Ivey Business School at the University of Western Ontario. Along with his academic achievements, he has a thorough knowledge of Environmental, Social and Governance (ESG) principles, which he incorporates into his consulting work. 

      Arun is well-known for his leadership abilities as well as his strong skills in data analysis, financial modeling, and operations management. He has been recognized for his ability to identify practical solutions and deliver value to clients ranging from banks to payment companies to software providers. Arun is also a past President of Toastmasters Club. 

      In his free time, Arun enjoys scuba diving.In his spare time, Arun likes to scuba dive. 

      Gregory Donovan

      Associate • Toronto

      Gregory  Donovan is a Chartered Accountant. He is a Fundamentals of Sustainable Accounting (FSA) Credential Holder.  He obtained an Honours in Business Adminstrations (HBA) from the Ivey Business School (Western University) and a Master or Laws (LLM) from the London School of Economics. Gregory is the CEO of Avondale Private Capital, a sustainable finance firm focused on energy transition finance and carbon markets.  He has presented on these topics at conferences in Canada, the US and UK.  

      Greg participates in the occasional triathlon and loves to go skiing and sailing with his two young children.

      Margaux Loptson

      Associate • New York City

      Margaux Loptson holds a Bachelor of Arts (Psychology) and a Bachelor of Arts (Criminology) from Pennsylvania State University. In addition, she holds several research certifications, including Ethical Conduct for Research Involving Humans. 

      She has been an essential player in AI-powered teaching and learning projects as a User Experience (UX) lead.  Margaux is known for applying her design thinking, problem-solving and analytical skills to make a positive impact. She is a native French speaker. 

      Margaux is a fitness enthusiast who can be found hiking around Central Park in NYC.

      Ritika Jain

      Associate / Responsible Supply Chain Lead

      Ritika Jain holds a Masters in Environmental Sciences, Policy and Management from Lund University (Sweden)  and a Bachelor of Technology from Indraprastha University (India). As a lifelong learner, she is pursuing a Graduate Diploma in Corporate Social Responsibility and Sustainability at the University of Toronto.

      Ritika is a recycling and responsible supply chain specialist.  Through her work, she collaborates with organizations to implement circular economy focused policies to ensure compliance with regulations.  

      Her proficiency in data analytics and with the Global Reporting Initiative (GRI) enable her to manage complex sustainability data. Ritika also volunteers with the UN Sustainable Development Solutions Network, engaging with youth to drive positive change.  

      Ritika is a native Hindi speaker.  She is a certified hiking leader who enjoys travelling.

      Jonathan Spence

      Associate • Edmonton

      Jonathan Spence holds an Honours Bachelor of Integrated Sciences (Earth and Environmental Sciences) from McMaster University and has his certification in Geographic Information Sciences from the ESRI Canada Center of Excellence at McMaster University. Jonathan worked as a research analyst in the environment and sustainability group for a TSX listed company.  

      He is pursuing his Ph.D. in Earth and Atmospheric Sciences at the University of Alberta, where he is researching the development of carbon capture techniques and their applications to the mining industry.  Jonathan is focused on helping companies to minimize their carbon footprint while supporting their economic growth.   

      Jonathan is an avid water polo player and coach. He plays for the local National Championship League team. 

      Gurnoor Gandhi

      VP Business Development & Strategic Partnerships

      Gurnoor Gandhi holds an MBA from Ivey Business School (Western University) and a postgraduate diploma in Maritime Energy Management (Sweden). Gurnoor brings experience with sustainability frameworks including TCFD, GRI, and CDP and is pursuing FSA credential (SASB). 

      Gurnoor has global leadership experience in the shipping industry managing assets worth millions of dollars on the high seas and has led diverse teams worked in Monaco, Singapore, and India. Most recently, he led organizational development and client partnerships at CARD, a non-profit focused on rural development and renewable energy.

      Gurnoor brings a blend of technical and leadership skills. He applied his knowledge of greenhouse gas accounting and carbon capture to support clients with niche energy transition projects. He is known for putting his problem-solving, stakeholder management, and project management skills to work to help firms expedite their ESG Journey. 

      Gurnoor is a certified BMW adventure motorcyclist who finds off-road rides rejuvenating for body and spirit.  He enjoys hiking with his family.

      Lisa-Annabel Ellis

      Founder & CEO

      Lisa Annabel Ellis holds an Honours Bachelor of Science (Environmental Science) from the University of Toronto and an MBA from the Ivey Business School (Western University). She is a certified Project Manager Professional (PMP) with a Six Sigma Green Belt. Lisa is a Fundamentals of Sustainable Accounting (FSA) Level II Candidate. Applying her deep expertise in business and operational strategies, she has led award-winning transformational initiatives.

      Drawing on her well-rounded science and finance expertise, she launched YellowYellow to help clients advance their sustainability practices. As an advocate of transparency and good governance, she partners with clients to understand their risks and opportunities to generate superior long-term value. Stakeholders across the value chain recognize the impact of this effort. She has been called upon to be a keynote speaker and lecturer.

      Lisa is an advanced scuba diver who enjoys most water-related sports.