‘Canadian Renewable Industries Have Differing Opinions on Federal Budget 2024’
Renewable Industries Canada (RICanada) has responded to the recent announcement in the Federal Budget 2024-2025, which allocates 6 million towards a revamped Clean Fuels Funding program. The program aims to bolster renewable diesel (RD), sustainable aviation fuel (SAF), and renewable natural gas (RNG). While RICanada acknowledges this positive step towards promoting clean fuels, they have expressed serious concern over the exclusion of ethanol from the supported biofuel categories.
The Canadian ethanol industry, a crucial component of the national biofuels sector and a significant economic contributor, is at risk due to this omission, particularly in Ontario. Local ethanol production not only sustains rural economies but also provides a cost-effective means for substantial emissions reductions within the transportation sector.
RICanada has highlighted several key points regarding the impact of the 2024 budget. The biofuels industry in Canada plays a significant role in the economy, generating billions of dollars and supporting tens of thousands of high-quality jobs, especially in rural areas. Ethanol production also serves as a reliable market for Canadian farmers, supporting local agriculture and production facilities.
The exclusion of ethanol from the recent budget raises concerns about competitive disparity in the Canadian market. It may expose the market to heavily subsidized imports, particularly from the United States, where biofuel production, including ethanol, is incentivized. This exclusion could undermine Canadian producers and threaten rural economic stability.
In terms of global competitiveness and market stability, RICanada emphasizes the importance of aligning biofuel incentives with leading nations like the USA. This alignment is crucial for Canada to maintain its position in the global clean fuel market and prevent potential investment outsourcing. The absence of ethanol from the incentive framework could tilt the market in favor of imports, posing a threat to domestic producers.
RICanada expresses gratitude for the acknowledgment from Deputy Prime Minister and Finance Minister Chrystia Freeland in the recent budget, recognizing the essential role of scaling up biofuel production and innovation in Canada. The organization looks forward to collaborating with the federal government to refine the Clean Fuels Funding program and advocate for the inclusion of biofuels in Investment Tax Credits (ITCs). Additionally, they aim to promote the establishment of incentives for sustainable aviation fuel (SAF) and renewable diesel (RD) biofuel production infrastructures, crucial for industry growth, job creation, and economic development across Canada.
Established in 1984, Renewable Industries Canada (RICanada) is a business coalition representing the forefront of Canada’s biofuel producers. The membership includes the nation’s leading renewable fuel producers and industry experts, specializing in low-carbon ethanol, biomass-based diesels, sustainable aviation fuel, and clean hydrogen production. Collectively, RICanada’s members have billion worth of potential projects in Canada, underscoring the significant potential for growth and innovation in the biofuels industry.
