For immediate release – The Canadian Fuels Association (CFA) and its members appreciate the federal government’s recognition of the important contribution Canadian biofuels will make to grow our economy, bolster energy security and drive the decarbonization of the transportation fuels sector in Budget 2024: Fairness for Every Generation. The inclusion of measures of up to $1.7 billion in support of Canada’s biofuel sector in this year’s budget is helpful to address some of the gap with U.S. subsidies awarded under the Inflation Reduction Act (IRA) and improve the competitive landscape for some Canadian biofuel investments.
“Since last year’s consultations, CFA and our biofuels partners have had very productive discussions with government officials on needed incentives to stimulate more investments in Canadian biofuel projects,” said Bob Larocque, President & CEO of the Canadian Fuels Association. “Today’s announcement sends a signal that made-in-Canada biofuels are important for this government and that measures to stimulate biofuel investments are essential to increasing production in Canada to the benefit of our economy, energy security and decarbonization. At the same time, it is disappointing that ethanol investments in Canada were not openly supported.”
“Scaling up made-in-Canada biofuels production will significantly benefit rural communities as well as the agricultural, natural resources and clean technology sectors in Canada,” said Larocque. “Investments in biofuel projects also stimulate related investments in infrastructure and innovation and create new jobs across the full supply chain.”
Canada has the technology, expertise and opportunities to become a global leader in biofuels. There currently are biofuel projects worth approximately $12 billion awaiting final investment decision in Canada over the next year. These investments could create approximately 23,000 permanent direct and indirect long-term jobs from coast-to-coast over the next five years while reducing annual GHG emissions by at least 10 megatonnes.
“While we still have work ahead of us to level the playing field with clean fuel production tax credits provided by the IRA in the U.S., today’s budget will help stimulate more investments in Canadian biofuel production, and that is good news”, said Larocque. “In the days ahead, we will work with the government to ensure these measures are implemented in an effective and timely manner.”
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About the Canadian Fuels Association
The Canadian Fuels Association (CFA) represents Canada’s transportation fuels industry and our members supply 95% of Canada’s transportation fuels. Contributing over $10 billion to Canada’s GDP annually, the sector also provides employment for more than 117,000 Canadians at 15 refineries, 75 fuel distribution terminals and 12,000 retail and commercial sites across the country.
For more information or media inquiries, please contact: media@canadianfuels.ca
