Renewable Industries Canada (RICanada) welcomes the federal government's proposed amendments to the Clean Fuel Regulations (CFR), including credit multipliers for Canadian-made biofuels. The proposal marks meaningful progress in addressing the competitive disadvantage created by U.S. production subsidies, but the recommended 1.3x multiplier for ethanol falls short of the industry's evidence-based 1.4x minimum.
The multiplier is a policy solution proposed and advanced by RICanada members to address foreign production subsidies within Canada's existing regulatory framework. Its inclusion is an important step, but its effectiveness depends on getting the value right.
"Canada has recognized the competitive disadvantage facing domestic ethanol producers and adopted a mechanism to address it. That's important progress," said Andrea Kent, RICanada Past President and Board Member. "But recognizing the problem and closing the gap are two different things. The multiplier must reflect real-world competitive conditions if we're serious about attracting investment and expanding Canadian biofuel production, not simply increasing biofuel consumption."
RICanada is calling for the proposed 1.3x ethanol multiplier to be maintained through the government's consultation phase and strengthened to a minimum of 1.4x in the final amendments.
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