OTTAWA,
ON, April 17, 2024 /CNW/ - Renewable
Industries Canada (RICanada) notes the announcement in yesterday's
Federal Budget 2024-2025, which included $776 million towards a retooled Clean Fuels
Funding program to support renewable diesel (RD), sustainable
aviation fuel (SAF), and renewable natural gas (RNG). However,
RICanada is issuing a serious concern over the apparent exclusion
of ethanol among the supported biofuel categories.
The Canadian ethanol industry, a critical component of our
national biofuels landscape and a major economic contributor, faces
significant risks from this exclusion, particularly in Ontario. Local ethanol production not only
supports rural economies but also offers a cost-effective method
for significant emissions reductions in the transportation
sector.
Key Points from RICanada in Light
of the 2024 Budget:
- Economic Impact: The biofuels sector in Canada generates billions of dollars in
economic impact and supports tens of thousands of high-quality
jobs, mainly in rural areas of Canada. Ethanol production provides a
steadfast market for Canadian farmers, enhancing local agriculture
and production facilities.
- Competitive Disparity: The recent budget's exclusion of
ethanol will likely open the Canadian market to heavily subsidized
imports, mainly from the United
States, where the Inflation Reduction Act (IRA) incentivizes
biofuel production including ethanol. This could undermine Canadian
producers and rural economic stability.
- Global Competitiveness and Market Stability: Aligning
Canada's biofuel incentives with those of leading nations like the
USA is essential to secure
Canada's position in the global
clean fuel market and to prevent outsourcing of potential
investments. The omission of ethanol from the incentive framework
skews the market in favour of imports.
RICanada appreciates the recognition from Deputy Prime Minister
and Finance Minister Chrystia
Freeland in yesterday's budget, emphasizing the critical
role and need to scale up biofuel production and innovation in
Canada. We are eager to continue
our collaboration with the federal government to refine the Clean
Fuels Funding program and for the integration of biofuels into
Investment Tax Credits (ITCs), in addition to promoting the
establishment of incentives for SAF and RD biofuel production
infrastructures. These measures are crucial in catalyzing the
growth of the industry, generating employment, and expanding
economic opportunities throughout Canada.
About RICanada
Founded in 1984, Renewable Industries Canada (RICanada) is a
business coalition representing Canada's first and foremost biofuel producers.
RICanada membership includes the country's largest and most
innovative renewable fuel producers and industry experts. Member
companies produce low-carbon ethanol, biomass-based diesels,
sustainable aviation fuel, are innovating towards clean hydrogen
production, and have $15 billion
worth of prospective projects in Canada.
SOURCE Renewable Industries Canada