Business · Energy & Commodities · 5 hrs ago

Canadian farm alliance seeks stronger support for domestic ethanol

Canadian farm alliance seeks stronger support for domestic ethanol

The Farms and Fuels Alliance is calling for a higher credit multiplier for Canadian-made ethanol in changes to Canada’s Clean Fuel Regulations.

The government has proposed a multiplier of 1.3 times for domestic ethanol, which the alliance says is a step forward but not enough.

It wants a minimum of 1.4 times in the final amendments.

The alliance says the change is needed to offset competition from U.S. biofuel subsidies, including a production tax credit.

Ethanol helps generate credits under Canada’s rules, and demand for it is growing.

But the latest available government data shows that only 38 per cent of ethanol used to generate credits was made in Canada, the alliance says.

The final amendments will determine whether Canadian producers receive the stronger support the alliance is seeking.

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What people are saying

Farms and Fuels AllianceOrganization
The proposed 1.3x credit multiplier for Canadian-made ethanol is a meaningful step, but falls short of the evidence-based 1.4x minimum needed to level the playing field for domestic producers.
via Financial Post
Canada should be capturing more of the economic growth its own regulations create.
via Financial Post