Ontario government reaffirms biofuels incentive policy

In Canada, the premier of Ontario said that his government will not reconsider its ethanol incentive program despite food inflation reports, saying “A whole bunch of circumstances are driving up food prices.” In Ontario’s program, more than $520 million will be spent by 2017 in support of ethanol production after the imposition of a 5 percent ethanol mandate in 2005. The program’s goal is to make Ontario a net exporter of ethanol by 2012.

Canada’s biofuel poicy has been robustly pursued at the provincial level. Prince Edward Island Development Minister Richard Brown told CBC last month that the Atlantic provinces are set to establish a unified standard for biofuels, which may include a minimum blending percentage or tax incentives.

The Prince Edward Island environmental and renewable industries committee recommended that the province should create an “aggressive biofuels portfolio” for the province. The committee said that the policy would diversify the provincial energy mix, improve the economy, and assist in meeting meet greenhouse gas emission targets. The committee identified extensive cellulosic biomass feedstocks such as wood, grasses, straw and crop residues that could be utilized for fuel, heat and power.

The Canada West Foundation released a report calling on the Canadian federal government and provincial governments to synchronize their programs, jurisdictions and emissions targets. The study pointed out that four Atlantic provinces and two territories have not set greenhouse gas emission targets, while five provinces that have established goals have different targets and dates.

In addition, three provinces have established different cap-and-trade systems for trading emission credits.

Recently, the province of British Columbia unveiled an ambitious plan to achieve energy self-sufficiency and zero net greenhouse gas emissions by 2016. The province outlined plans to spend $25 million on a BioEnergy Network to spur biofuels investment, a well as $10 million to stimulate biodiesel production., The province plans to use timber killed by the mountain pine beetle, waste wood, and agricultural residue as feedstocks.

Overall, the Canadian provinces have set the following targets and policies:

• Ontario has an emissions reduction target of 12 percent below 1990 levels by 2014
• Manitoba has an emissions reduction target of 12 percent below 1990 levels by 2012, and is advocating a national cap-and-trade system.
• Saskatchewan has an emissions reduction target of 22 tonnes per capita by 2020 and 80 percent reduced from 2007 levels by 2050, and has rejected cap-and-trade.
• Alberta has an emissions reduction target of by 14 percent from 2005 levels by 2050.
• British Columbia has an emissions reduction target of 33 percent below 2007 levels by 2020, and 80 per cent below 2007 levels by 2050. The province plans to introduce a cap-and-trade system this year.
• Prince Edward Island has no emissions targets.
• Newfoundland has no emissions targets.