Canadian Biomass Magazine

Biofuels key to success of Clean Fuel Standard: study

May 4, 2018
By Renewable Industries Canada

May 4, 2018 - Canada’s two largest biofuels stakeholders – Renewable Industries Canada (RICanada) and Advanced Biofuels Canada (ABFC), together representing almost 50 member companies – have released the results of a new study on the economic impact of Canada’s upcoming Clean Fuel Standard (CFS).

The study demonstrates that biofuels could be responsible for as much as 21.3 megatonnes (MT) per year of greenhouse gas (GHG) emission reductions by 2030 – approximately 70 per cent of the 30 MT target set by the federal government. On this basis, study author, Doyletech Corporation, concludes that meeting the increased demand for biofuels with domestic production would:

  • have a one-time construction phase impact of $9.6 billion and 47,100 job-years during the build-out period; and
  • bring an increase of $21.3 billion per year in economic activity and 12,614 permanent jobs.

All levels of government would benefit from increased tax revenues, including: $1.69 billion per year for the federal government; $1.47 billion per year for provincial governments; and $107 million per year for municipal governments.

“This objective report provides yet more evidence that the Canadian biofuels industry can play a major role in further reducing greenhouse gas emissions from transportation, while creating jobs and economic growth,” said Jim Grey, RICanada Chair. “Our biofuels sector is poised to grow and build upon our past successes.”

Ian Thomson, ABFC President, stated that, “The drive to low carbon fuels is on, with Canada in a race to attract global capital to expand domestic clean fuels. This study shows how a robust CFS can benefit Canadians in agriculture and forestry, as well as provide new, economical solutions for urban and industrial wastes. If we had tallied lower health bills from cleaner air in our cities, the benefits would be even larger.”


Since 2010, Canada’s biofuels industry has been removing the CO2 equivalent of 1 million cars from our roads each year. Combatting pollution with biofuels already generates $3.5 billion worth of annual economic activity, and has created over 14,000 jobs (Doyletech 2013). The renewable fuels sector is a rural success story that has provided well-paying jobs and supports the agricultural sector. As farm outputs rise quickly due to new efficiencies, biofuels provide important price stability to farmers facing new market and trade challenges. As well, it provides additional value to animal fats and used cooking oils, and will increasingly tap new feedstocks such as municipal solid waste and forest residues. The biofuels sector is poised to play a critical role as the foundation of Canada’s clean fuel growth. A wave of innovation is building upon the successes of the last few decades as the industry continues to provide Canadians with renewable, clean-burning biofuels such as ethanol and biodiesel – and bring new low-carbon biofuels to the front line of the fight against climate change.

An executive summary of Doyletech Corporation’s economic impact assessment can be found via the following weblink:

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