After five years of regulatory development, Canadian Canola Growers Association (CCGA) is pleased to see the final Clean Fuel Regulations (CFR) were published earlier today and will come into effect on July 1, 2023.
The regulations will provide the certainty that all parts of the biofuel supply chain, from farmers to renewable fuel producers, need to begin preparing for future market opportunities.
“We're optimistic about the positive role that the Clean Fuel Regulations can have on creating new, incremental domestic demand for canola through the manufacturing of renewable fuels," says Steve Pratte, Senior Manager, Transportation and Biofuel Policy at CCGA. Although there are several ways for fuel suppliers to comply with the regulation, the use of biofuels is likely to play an expanded role in fulfilling their compliance obligations in the coming years.
The CFR requires that transportation fuels in Canada have an incremental carbon intensity reduction reaching 15% by 2030. Canola-based biofuels help lower the greenhouse gas (GHG) emissions profile of diesel fuels and are recognized by governments and regulators in North America and around the world for their contribution to greening the economy.
“Canadian canola farmers are proud to grow a feedstock that makes a positive contribution to the environment," says Mike Ammeter, Chair of CCGA. “Biofuels create value-added processing for our regional economies and diversify the continental market for canola, which is good for the sustainability of our farms."
“Over the years, we've put significant effort into engaging with government about the CFR to ensure it provides an opportunity for agriculture to positively contribute to emissions reductions from transportation fuels, with the least amount of regulatory burden on farmers as possible," says Pratte. “Growth of the canola processing sector in Western Canada, the finalization of the CFR and its potential demand signals, and the announcements of investments in renewable diesel production in Canada all contribute to a sense of optimism for canola farmers."
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