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Feds’ Clean Fuel Regulations could have positive impact for canola farmers

Jul 7, 2022 | 1:19 PM

The agriculture sector may see a big spike economically by this time next year.

That’s the hope for the Canadian Canola Growers Association as Canada’s new clean fuel regulations officially come into effect on July 1, 2023.

This will force fuel producers to reduce the carbon intensity of its gasoline and diesel.

“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,” said Steve Pratte, Senior Manager, Transportation and Biofuel Policy at CCGA.

The federal government believes these regulations could cut more than 26 million tonnes of greenhouse gas pollution in 2030, or roughly the number of emissions currently generated by the entire Canadian economy in two weeks.

Biofuels, such as canola, have been shown to help reduce emissions from diesel fuels.

“Canadian canola farmers are proud to grow a feedstock that makes a positive contribution to the environment,” added 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.”

Right now, it’s estimated around 2.2 billion litres of additional low-carbon-intensity diesel and roughly 700 million litres of additional ethanol will be needed in 2030 under the CFR. The federal government believes this will create economic growth and jobs for Canadians across the country.