Canada’s renewable natural gas industry is positioned for rapid growth, with production projected to increase four-fold by 2028.
The increase will be spurred by a strong project pipeline and new federal regulations that put large landfills on a compliance clock, according to the Canadian Biogas Association’s 2026 Market Report.
Nearly 300 biogas and RNG facilities operate across the country, producing enough energy to meet the needs of about 800,000 Canadian homes annually. They collectively process more than 2.2 million tons of organic waste each year.
Twenty-six additional RNG projects are under development.
Despite this progress, Canada is tapping only 14% of its available biogas feedstock. More than 70 projects are ready to move forward but await stronger policy signals and competitive financial support, the report states.
The untapped opportunity is significant.
At wastewater treatment facilities, around 50% of biogas generated is currently flared rather than captured. And 62% of landfills are burning off gas that could be captured.
That is poised to change.
The Landfill Methane Regulations that went into effect in December 2025 mandate strict controls on methane emissions from large landfills. The first set of those landfills will face compliance obligations beginning in 2028. The eventual goal is to reduce landfill methane emissions by 50% by 2035.
For the first time, large landfill operators are on a mandatory timeline, and RNG project development is expected to accelerate accordingly.
With the right policy support, the CBA estimates the sector could attract $2.9 billion in private investment and support nearly 36,000 jobs by 2050.
Read the full report: CBA Market Report 2026
