Canada Plans Rise In Use Of Renewable Fuels

Canada plans to require the use of renewable fuels in gasoline, diesel, and heating oil as part of the country's effort to reduce greenhouse gas emissions. Environment Minister Rona Ambrose says the government intends to require an average annual renewable content of 5% in gasoline by 2010 and 2% in diesel fuel and heating oil by 2012.

The government also plans to allocate $200 million (Canadian) to create incentives for renewable fuels production and $145 million for research and development. "This is a win-win-win situation," Ambrose says. "Canadians will reap environmental benefits; our farmers and rural communities will profit; and by continuing to work toward a viable domestic biofuels industry, we will secure Canada's place in the growing bioeconomy."

The minority Conservative government will need support in Canada's Parliament from opposition parties in passing clean air legislation that would include the targets. Robin Speer, director of public affairs for the Canadian Renewable Fuels Association, says greater use of ethanol and biodiesel can help reduce greenhouse gas emissions from transportation and provide a valuable market for grain and oilseed farmers.

"We will continue to work with the government to reduce tax rates paid by renewable fuels producers to a level competitive with those found in other countries," Speer adds.