Canada’s Farms and Fuels Alliance calls on government to deliver promised CFR amendments
In a letter to the Prime Minister, the FFA joins Renewable Industries Canada in calling for targeted amendments to the CFR that would address a competitiveness gap the government identified more than a year ago. Canada’s ethanol market is growing, but more of that growth is going to imports instead of Canadian-made ethanol. The government’s promised fix has still not been published.
The FFA and Renewable Industries Canada are calling for a minimum 1.4x credit multiplier for Canadian-made ethanol under the CFR. The measure would help address a growing competitive imbalance: U.S. ethanol entering Canada benefits from meaningful production support through the U.S. 45Z Clean Fuel Production Credit while competing on par with Canadian ethanol in Canada’s own market.
Last month, the United States announced Canada is on track to become a billion-gallon (4 billion-litre) ethanol export market. Without a timely and sufficient Canadian policy response, growing demand created by Canadian policy will increasingly support production, agricultural demand and investment outside Canada.
Category: Policy
