Access Platform ↗ Careers at Climate Decode
← CFR Series Speak to an Expert →
CFR Series • Technical

The Fuel LCA Model: How Carbon Intensity Is Calculated Under Canada's CFR

The methodology behind CI scoring — the single most impactful lever in CFR credit economics.

By Koorosh Behrang • • 3 min read

gCO₂e/MJ
CI measurement unit
6
lifecycle emission components
3
step modelling process
In This Article
How the Model Works • CI Scopes • The CI Formula • 3-Step Modelling Process • CI Timeline • Data Sources
1

How the Fuel LCA Model Works

The Fuel LCA Model calculates carbon intensity (CI) by quantifying the greenhouse gas (GHG) emissions released over the full lifecycle of a fuel, material input, or energy source, expressed in grams of CO₂e per megajoule (gCO₂e/MJ). This process involves assessing emissions across several interlinked stages, from feedstock acquisition to the final combustion of the fuel.

CI

Carbon Intensity (gCO₂e/MJ)

The full lifecycle GHG emissions per unit of energy. This is the single most impactful metric in CFR credit economics — every gram of CI reduction translates directly into credit value.
2

Life Cycle Scopes

The model allows for the calculation of two distinct types of CI values, depending on the boundary of analysis.

Cradle-to-Gate

Covers all lifecycle stages from feedstock production up to the production facility gate.

Includes:

Feedstock extraction → Processing → Production

Cradle-to-Grave

Represents the full lifecycle, adding distribution and combustion to the cradle-to-gate value.

Includes:

Feedstock → Production → Distribution → Combustion
3

The CI Calculation Formula

For many pathways, the CI value is determined by summing the specific emissions associated with different lifecycle components:

CI = CIf + CIp + CIcl + CIe + CItd + CIc

Variable Component Description
CIf Feedstock Emissions from feedstock extraction or production
CIp Production Emissions from production processes, including transport of feedstocks and intermediaries
CIcl Compression / Liquefaction Emissions from compression or liquefaction of the fuel
CIe Electricity Additional emissions from electricity used during production
CItd Transport & Distribution Emissions from T&D if total distance is at least 1,500 km
CIc Combustion Emissions from combustion or end-use of the fuel
4

The Three-Step Modelling Process

The Fuel LCA Model utilises a structured approach to calculate CI values using the OpenLCA software.

Step 1: CFR Data Workbook

 Data Collection

Applicants collect primary operating data — quantities of feedstock, fuel, and electricity used — over a 24-month period. This data is converted to standard temperature and pressure and used to calculate input/output flows for the pathway.

Step 2: Allocation Matrix

 Co-Products

If a process produces multiple outputs (like ethanol and dried distiller's grains), the applicant must use an Allocation Matrix to partition the production emissions between the fuel and its co-products based on their energy content (Higher Heating Value).

Step 3: OpenLCA Modelling

 Final CI Result

The quantified flows and allocation factors from the workbook are copied into the OpenLCA software, where they are linked to emission factors from the ECCC Data Library to generate the final CI result.

5

CI Value Timeline: Default to Permanent

ECCC provides a structured pathway for applicants to progress from a default CI value to a facility-specific permanent CI, reflecting increasing data availability over time.

1

Default CI

First 12 months

ECCC allows use of a pre-calculated default CI value while applicants collect initial operating data. No facility-specific modelling required yet.
2

Temporary CI

With 3+ months of data

Once at least 3 months of facility-specific operating data is available, applicants can apply for a temporary CI value. Valid for up to 24 months while full data is compiled.
3

Permanent CI

With 24 months of data

After collecting a full 24 months of operating data, the applicant submits for a permanent CI value — the definitive score used for ongoing credit creation.

This staged approach enables producers to begin generating credits immediately using default CI values while building toward a facility-specific permanent CI that reflects their actual operational performance. A lower permanent CI translates directly into greater credit value per unit of fuel supplied.

6

Data Sources and Parameters

The model relies on a mix of data sources to ensure accuracy across different pathway types.

Applicant Data

Primary data describing the specific facility's operation — feedstock quantities, energy inputs, production volumes collected over 24 months.

Predefined Data

Standard factors provided by Environment and Climate Change Canada (ECCC) for common inputs like fossil fuel combustion emission factors.

Transferred CI Values

Approved CI values for inputs produced by a third party — such as RNG used to make hydrogen at a different facility.

Need Help With CI Modelling?

Climate Decode supports fuel producers in navigating the Fuel LCA Model, optimising CI scores, and structuring credit creation applications for maximum value under the CFR.

Speak to an Expert →

About the Author

Koorosh Behrang — Founder of Climate Decode, CI modelling and CFR specialist

Koorosh Behrang

Founder, Climate Decode

Founder of Climate Decode with more than 10 years of experience across decarbonization strategy, corporate sustainability, Net Zero target setting, and compliance carbon markets. His work centers on the interaction between decarbonization pathways and regulated carbon systems, translating that complexity into finance-grade insight for executive decision making.

Speak to Koorosh → LinkedIn →

Continue Reading the CFR Series

Deep dives into credit generation pathways and market strategy.

CC2 Deep Dive

RNG and Biogas Revenue Streams Under Canada's CFR

How RNG and biogas producers generate CC2 credits and monetise low-CI gas pathways.
CC1 Deep Dive

Upstream Emissions Reduction in Crude Oil & Bitumen

How upstream producers generate CC1 credits through CCS, methane abatement, and low-carbon energy.
View Full CFR Series →

© 2026 Climate Decode. All rights reserved.

 CFR Series Insights Home Contact Us climate-decode.com