Opinion: Biofuels industry ‘poised and ready’ for Clean Fuel Regulations

On July 1, Canada’s Clean Fuel Regulations (CFR) will come into force. It resembles the clean fuel standards used in British Columbia, California, Oregon, Washington State, and some countries in the EU. Once fully implemented, Canada’s CFR is expected to help cut up to 26.6 million metric tons of greenhouse gas (GHG) pollution by 2030.

By design, the CFR favours lower-carbon alternatives to conventional fuels. Biofuels, like ethanol and biomass-based diesel, are the most affordable, available, and essential solution to climate change we have.

Fuel standards in British Columbia resulted in higher ethanol blending to meet emission targets. The wholesale price of ethanol is routinely lower than gasoline. In the United States (which supports up to 85 per cent ethanol blends), a 15 per cent ethanol blend can save a family 3.6 cents per litre CAD on average. 

National ethanol blending today is at least five per cent, with some provinces, like Ontario, having more ambitious requirements. Based on the U.S. experience, Canadian consumers stand to benefit from increased ethanol blending. For example, motorists in Atlantic Canada could be among the biggest winners as the gasoline biofuel level rises from a current five per cent average to as high as 15 per cent by 2030 with the CFR.

Renewable Industries Canada (RICanada) members have produced reliable, low-carbon fuels for decades and continue innovating to reach even lower carbon intensities. We look forward to working with customers and governments nationwide to ensure biofuels remain an impactful and economically sustainable contributor to reducing Canada’s emissions under the CFR due to their wide availability and lower price point.

For more information about Canada’s new national clean fuel standard, please see Environment and Climate Change Canada’s policy overview.

This article is part of Biofuels Week 2023. To read more articles on biofuels, click here.