As set out in the Notice of Intent on Cleaner vehicles, Engines and Fuels, Environment Canada proposes to develop measures to reduce the level of sulphur in both light and heavy fuel oils used in stationary facilities. In addition to reducing the contribution that burning fuel oils can have in the formation of acid rain (particularly in eastern Canada) and improve air quality from the reduction of associated fine particulate matter pollution, this initiative has potential to encourage fuel switching to lower greenhouse gas emitting fuels, such as natural gas.

Environment Canada has completed background studies to examine various aspects associated with reducing sulphur in fuel oils. The Discussion Paper entitled "Setting Canadian Standards for Sulphur in Heavy and Light Fuel Oils"(April 2003) discusses results from these background studies, reviews existing regulations of jurisdictions, and assesses the potential impacts on sulphur dioxide and fine particulate matter emission if limits set in the European Union were matched (i.e., 1% by weight of sulphur for heavy fuel oils and 0.1% by weight of sulphur for light fuel oil). The Discussion Paper also explores options for development of appropriate complementary measures to regulations, such as economic instruments.