Ethanol left out of Canada’s proposal to support biofuels

In Canada, the federal government’s decision to introduce biofuel production incentives is a significant step toward revitalizing the domestic energy sector and securing Canadian jobs, says Unifor.

“Canada’s energy security must remain a top priority,” said Unifor National President Lana Payne. “By strengthening the biodiesel and renewable diesel markets, we have an opportunity to create good jobs and strengthen the Canadian energy supply chain.”

The initiative, announced by Prime Minister Mark Carney, will allocate over $370 million over two years to support domestic producers. This move aims to stabilize Canada’s biofuel sector in response to new U.S. subsidies and policies undermining Canadian energy exports.

But Renewable Industries Canada says excluding ethanol from Canada’s new Biofuels Production Incentive hands the advantage to American producers. While it welcomes federal support for renewable diesel and biodiesel, leaving out ethanol undermines provincial buy-Canadian policies and gives subsidized U.S. imports a competitive edge over Canadian producers and farmers.

RICanada urges the federal government to expand the Biofuels Production Incentive to include ethanol and ensure upcoming Clean Fuels Regulation changes protect domestic ethanol production and Canadian jobs while maintaining strong market signals for local agricultural producers. This approach is essential so both our ethanol and renewable diesel producers can compete effectively within our own borders.