Canola industry urges action to drive domestic demand through targeted amendments to the Clean Fuel Regulations (CFR)

Recently, the canola industry responded to Environment and Climate Change Canada’s (ECCC) Discussion Paper on proposed targeted amendments to the Clean Fuel Regulations (CFR). The CFR amendments are part of support measures announced by the federal government in September 2025 to assist Canada’s canola industry, including the farmers who grow the crop.

The proposed amendments fail to include concrete proposals that will help secure additional domestic demand for canola as a biofuels feedstock, especially while the industry faces continued uncertainty in global markets. While canola is mentioned several times in the discussion paper as an important feedstock in domestic biofuel production, there are no specific provisions to support increased use of canola and other domestic feedstocks in the Canadian biofuels market. Additionally, concerns remain about potential compliance risks related to foreign used cooking oil (UCO).

Having a competitive domestic biofuel industry is important for canola’s market diversification strategy. While the proposed options in the paper are intended to support a competitive operating environment for Canadian biofuel producers, as written, they assume that any benefits resulting from the proposed amendments will automatically trickle down to farmers and the broader canola value chain. As feedstock suppliers, canola farmers and processors have been operating in a volatile marketplace. The targeted amendments can help level the competitive playing field and provide an opportunity to secure market demand for feedstocks such as canola here in Canada.

To meet the stated objective of assisting the canola industry through the CFR targeted amendments, the canola industry recommends the following:

• Regulatory measures to support domestic biofuel production must include a condition that only fuels made from domestic or North American feedstock are eligible for these supports.
• Regulatory measures must provide a strong market signal that expands domestic biofuel production volumes, resulting in increased demand for local feedstock.
• Risks associated with fuels made from potentially fraudulent foreign UCO entering the Canadian clean fuels market must be addressed without delay.