The federal government has proposed amendments to Canada's Clean Fuel Regulations (CFR), but farm organizations and the renewable fuel industry say the changes fall short of what is needed to protect Canadian ethanol producers from heavily subsidized U.S. competition.
Announced Tuesday, the proposed amendments include a 1.3-times credit multiplier for Canadian-produced ethanol, below the minimum 1.4-times multiplier sought by Grain Farmers of Ontario, the Farms and Fuels Alliance and Renewable Industries Canada (RICanada).
The changes are intended to improve the competitiveness of domestic low-carbon fuel producers while encouraging investment and reducing greenhouse gas emissions.
Draft regulations will be published in the Canada Gazette on Oct. 30, followed by a 75-day public consultation period.
RICanada welcomed the proposed multiplier as an important step but warned it would not fully offset the competitive advantage enjoyed by American producers through the U.S. 45Z Clean Fuel Production Credit.
"Canada has recognized the competitive disadvantage facing domestic ethanol producers and adopted a mechanism to address it. That's important progress," Andrea Kent, RICanada past president and board member, said in a release. "But recognizing the problem and closing the gap are two different things."
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