Renewable Industries Canada Welcomes Clean Fuel Regulations Progress, Calls for Stronger Ethanol Multiplier

OTTAWA, ON, Oct. 27, 2026 /CNW/ — October 27, 2026 – Renewable Industries Canada (RICanada) welcomes the federal government’s proposed amendments to the Clean Fuel Regulations (CFR), including credit multipliers for Canadian-made biofuels. The proposal marks meaningful progress in addressing the competitive disadvantage created by U.S. production subsidies, but the recommended 1.3x multiplier for ethanol falls short of the industry’s evidence-based 1.4x minimum.

The multiplier is a policy solution proposed and advanced by RICanada members to address foreign production subsidies within Canada’s existing regulatory framework. Its inclusion is an important step, but its effectiveness depends on getting the value right.

“Canada has recognized the competitive disadvantage facing domestic ethanol producers and adopted a mechanism to address it. That’s important progress,” said Andrea Kent, RICanada Past President and Board Member. “But recognizing the problem and closing the gap are two different things. The multiplier must reflect real-world competitive conditions if we’re serious about attracting investment and expanding Canadian biofuel production, not simply increasing biofuel consumption.”

RICanada is calling for the proposed 1.3x ethanol multiplier to be maintained through the government’s consultation phase and strengthened to a minimum of 1.4x in the final amendments.

ECCC’s analysis relies on an average U.S. 45Z production tax credit value rather than the higher incentives available to lower-carbon-intensity ethanol that has been targeted for export to Canada. By design, the CFR rewards lower-carbon-intensity fuels, making Canada a particularly lucrative market for those U.S. producers enjoying the highest levels of the tiered 45Z tax credits.

Financial reporting from publicly traded U.S. ethanol producers demonstrates the scale of the disparity. U.S. producers are reporting production tax credits equivalent to approximately 35 cents CAD per litre, while the proposed 1.3x multiplier would generate an estimated 12 cents CAD per litre in additional CFR credit value.

RICanada is also encouraged by the proposed measures for sustainable aviation fuel (SAF), which recognize the opportunity to support investment and growth in Canada’s emerging SAF industry. These provisions, alongside the ethanol multiplier, represent important progress that should be preserved and built upon.

The amendments must also be considered together. Expanded compliance flexibility could weaken the CFR credit market, undermining the investment signal for Canadian industry that the multipliers are intended to strengthen.

RICanada looks forward to working with the federal government to ensure the final amendments address the competitive disadvantage created by foreign production subsidies, attract private investment and strengthen Canadian renewable fuel production.

About Renewable Industries Canada

Renewable Industries Canada represents Canadian-operated biofuels producers, including the majority of ethanol production in Ontario and Québec. Its members source feedstocks locally, employ Canadians in rural communities and deliver reliable renewable energy that supports Canada’s climate and energy security objectives.

SOURCE Renewable Industries Canada (RICanada)