Business · Energy & Commodities · 5 hrs ago
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.
The Farms and Fuels Alliance is calling for a higher credit multiplier for Canadian-made ethanol in final amendments to Canada’s Clean Fuel Regulations.
The alliance says the proposed 1.3-times multiplier is a meaningful step but is below the 1.4-times minimum it considers necessary.
It says U.S. biofuel subsidies, including the 45Z production tax credit, create a competitive disadvantage for Canadian producers.
Environment and Climate Change Canada’s latest available data show that 38 per cent of ethanol used to generate credits was produced in Canada.
- Who
- The Farms and Fuels Alliance.
- What
- It is seeking a minimum 1.4-times credit multiplier for Canadian-made ethanol in final amendments to the Clean Fuel Regulations.
- When
- The article was published on 2026-10-27. The date of the proposed amendments is not stated.
- Where
- Ottawa, Ontario.
- Why
- The alliance says the proposed 1.3-times multiplier is not enough to offset the competitive disadvantage created by U.S. biofuel subsidies.
Farms and Fuels Alliance
Government of Canada
Proposed multiplier
Farms and Fuels Alliance
The alliance says the final amendments should set a minimum 1.4-times multiplier for Canadian-made ethanol.
Government of Canada
The government has proposed a 1.3-times multiplier for Canadian-made ethanol.
Assessment
Farms and Fuels Alliance
The alliance says 1.3 times falls short of what is needed to level the playing field for domestic producers.
Government of Canada
The government’s rationale for proposing 1.3 times is not stated.
The government proposed a 1.3-times credit multiplier for Canadian-made ethanol.
The Farms and Fuels Alliance welcomed action on U.S. biofuel subsidies and called for a minimum 1.4-times multiplier.
- Proposed multiplier
- 1.3x for Canadian-made ethanol
- Alliance’s requested minimum
- 1.4x
- Domestic share of ethanol used to generate credits
- 38 per cent
- U.S. subsidy cited
- 45Z production tax credit
What people are saying
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.
Canada should be capturing more of the economic growth its own regulations create.