This week, industry leaders, innovators, and policymakers are gathering in Calgary for the Clean Fuels Canada Summit to discuss how to accelerate the development of Canada’s clean fuels sector, including biofuels. With transportation fuels remaining an essential component of our economy for the foreseeable future, expanding our domestic biofuel industry is a necessary step toward reducing emissions, bolstering energy security, and strengthening the Canadian economy.
As electric vehicle technology continues to advance, biofuels offer an immediate and scalable solution to cut transportation emissions—particularly in hard-to-electrify sectors like heavy transport, rail, marine, and aviation. Despite federal and provincial mandates to decarbonize transportation fuels, Canada increasingly relies on biofuel imports, primarily from the U.S. Domestic production, once 60–70% of total consumption, has dropped to 35%, as U.S. policies like the Clean Fuel Production Tax Credit drive growth in their renewable diesel, sustainable aviation fuel and ethanol sectors.
Canada has the opportunity to lead in clean energy innovation while supporting key industries like agriculture and forestry that supply vital feedstocks. For example, Canada’s biofuel sector currently contributes approximately $6.4 billion annually to the economy and supports 9,400 jobs, with over half the total economic impact and nearly two thirds of the jobs benefiting the farming industry.
To remain competitive and unlock Canada’s full potential in biofuels production and clean energy solutions, Canada must implement policies that provide regulatory certainty and attract investment in low-carbon fuels. Timely and effective action will help Canada secure a leadership role in the global biofuels market and seizing a crucial opportunity to develop homegrown, reliable, low-carbon energy solutions.
A competitive and well-supported biofuels industry is essential to ensure long-term energy security and positioning Canada as a leader in clean energy innovation. Expanding domestic biofuel production will also strengthen local economies and create jobs across the country, while advancing climate commitments. By leveraging existing infrastructure and diversifying the energy mix, Canada can ensure reliable, affordable, and sustainable transportation fuel solutions for businesses and consumers for today and tomorrow, driving towards a cleaner and more resilient future.
With the right policies in place, Canada can build a thriving low-carbon fuel sector that supports Canada’s climate targets, enhances national energy security, and delivers economic benefits to Canadians for decades to come.
Signed by:
Canadian Fuels Association (CFA),
Renewable Industries Canada (RIC), and
Canadian Council for Sustainable Aviation Fuels (C-SAF)
