Federal biofuels initiatives
In the 2007 budget the federal government pledged an investment of $2 billion over seven years to build Canada’s renewable fuel production capacity. Up to $1.5 billion was earmarked for operating incentives to producers of renewable alternatives to gasoline and diesel such as ethanol and biodiesel.
In December 2006, the federal government announced support of a national renewable fuel strategy calling for a 5% renewable fuel standard in all Canadian fuel, including a 2% mandate for renewables in diesel by 2012.
The announcement included a promise to regulate the use of renewable fuels in Canada and deliver $345 million to assist farmers and rural communities to seize new market opportunities in the agricultural bioproducts sector.