Environment and Climate Change Canada is considering the introduction of a
Clean Fuel Standard (CFS) to regulate a gradual decrease in the average
carbon intensity of transportation fuels and others. This briefing examines
the arguments in favour of retaining a minimum blend mandate within a CFS.
It considers the policy options and requirements that will ensure that
Canada’s ethanol industry continues to expand and commercialize
future production technologies. The briefing compiles data for the assessed
benefits of ethanol—benefits to farmers and the economic value of
blending ethanol as a source of octane rather than alternatives. It also
compiles data with respect to the financial contributions that Canadian
governments have made through the years and contemplates the fuels
distribution infrastructure that will be required to accommodate
higher-level ethanol blends. This is particularly important as Canada seeks
to reduce GHG emissions from transportation. Subsequent briefings will
consider several of these elements in further detail.