You are currently viewing Renewable Industries Canada Voices Mixed Responses to Federal Budget 2024

Renewable Industries Canada Voices Mixed Responses to Federal Budget 2024

Renewable Industries Canada (RICanada) acknowledges the recent announcement in the Federal Budget 2024-2025, allocating $776 million towards a revamped Clean Fuels Funding program aimed at bolstering renewable diesel (RD), sustainable aviation fuel (SAF), and renewable natural gas (RNG). However, RICanada expresses serious concern over the apparent omission of ethanol from the supported biofuel categories.

The Canadian ethanol industry, a pivotal component of our national biofuels sector and a substantial economic contributor, faces significant risks due to this exclusion, especially in Ontario. Local ethanol production not only sustains rural economies but also provides a cost-effective avenue for substantial emissions reductions within the transportation sector.

Key Points from RICanada Regarding the 2024 Budget:

Economic Impact: The biofuels industry in Canada contributes significantly to the economy, generating billions of dollars and supporting tens of thousands of high-quality jobs, particularly in rural areas. Ethanol production serves as a reliable market for Canadian farmers, bolstering local agriculture and production facilities.

Competitive Disparity: The exclusion of ethanol from the recent budget may expose the Canadian market to heavily subsidized imports, primarily from the United States, where biofuel production, including ethanol, is incentivized under the Inflation Reduction Act (IRA). This exclusion could undermine Canadian producers and threaten rural economic stability.

Global Competitiveness and Market Stability: It is crucial for Canada to align its biofuel incentives with leading nations like the USA to maintain its position in the global clean fuel market and prevent potential investment outsourcing. The absence of ethanol from the incentive framework tilts the market in favor of imports.

RICanada expresses gratitude for the acknowledgment from Deputy Prime Minister and Finance Minister Chrystia Freeland in the recent budget, highlighting the essential role and necessity of scaling up biofuel production and innovation in Canada. We look forward to continuing our collaboration with the federal government to refine the Clean Fuels Funding program and advocate for the inclusion of biofuels in Investment Tax Credits (ITCs). Additionally, we aim to promote the establishment of incentives for sustainable aviation fuel (SAF) and renewable diesel (RD) biofuel production infrastructures. These initiatives are vital for driving industry growth, creating employment opportunities, and fostering economic development across Canada.

Established in 1984, Renewable Industries Canada (RICanada) is a business coalition representing the forefront of Canada‘s biofuel producers. Our membership comprises the nation’s leading renewable fuel producers and industry experts. Member companies specialize in low-carbon ethanol, biomass-based diesels, sustainable aviation fuel, and are actively innovating towards clean hydrogen production. Collectively, our members have $15 billion worth of potential projects in Canada.

For More Details: