The Canadian government on September 5 unveiled new measures to support the country’s biofuels industry and canola farmers, including a $370 million production incentive and amendments to the Clean Fuel Regulations, reports Biodiesel Magazine.
The move is part of a broader plan launched by Prime Minister Mark Carney to strengthen Canadian industries most affected by U.S. tariffs and trade disruptions. Officials said domestic biofuel producers are at risk due to shifting subsidies and policy changes, leaving many facilities idle or closed. “Losing this sector would increase reliance on U.S. imports and weaken demand for Canadian crops such as canola,” the government noted.
To address this, a new production incentive will be introduced in January 2026, offering support of up to 300 million liters per facility through December 2027. The per-liter incentive will apply to biodiesel and renewable diesel producers, with Natural Resources Canada set to release more details in the coming weeks. Amendments to the Clean Fuel Regulations will also provide short-term support, while provinces and territories will be engaged to explore complementary measures.
Beyond biofuels, the government announced steps to help canola farmers, including raising loan limits to $500,000, investing $75 million in the AgriMarketing Program over five years, and doubling the interest-free portion of cash advances under the Advanced Payments Program from $250,000 to $500,000.
Industry leaders welcomed the measures. Jeremy Baines, CEO of Tidewater Renewables Ltd., said the incentives will make Canadian renewable fuel producers more competitive and support canola suppliers. Unifor president Lana Payne also voiced support, stressing the importance of strengthening Canada’s energy security and creating jobs in the renewable fuels sector.
The feasibility and impact of these initiatives will be closely monitored as Canada seeks to modernize its energy and agriculture industries while reducing reliance on imports.
