U.S. Grains Council staff and Ethanol Advisory Team members traveled to Ottawa, Canada, from Jan. 31 to Feb. 2, 2023, to meet with Canadian government officials and private stakeholders to discuss details related to the Canadian Clean Fuel Regulation released in July 2022. During this visit, the Council reiterated its enthusiasm and support for the regulation and advised against the further delay of the clear guidance necessary for its successful implementation.

Canada has been a significant, growing market for U.S. ethanol for the past decade and the top destination for U.S. ethanol for the past three years, setting a record export of nearly 470 million gallons exported in marketing year (MY) 21/22. With a strong start to MY 22/23, exports to Canada have reached more than 183 million gallons in the first four months of this marketing year and are up over 20 percent year-on-year.

“With Canadian ethanol blending estimated to reach 15 percent nationwide by 2030, the U.S. ethanol industry stands ready to provide the additional fuel necessary to meet Canadian demand. Any barriers to free trade must be addressed and removed to maintain this robust market and ensure successful policy implementation,” said Isabelle Ausdal, USGC manager of global ethanol policy and economics.

While in Ottawa, the Council delegation spoke with regulators and political staff within the Ministry of Agriculture, Ministry of Environment and Ministry of Natural Resources as well as legislative leadership within the major political parties. Topics of discussion included achieving legislative recognition for land use and biodiversity criteria for U.S. ethanol producers and application requirements for GPS coordinates for feedstock suppliers.

“U.S. ethanol enjoys a synergistic relationship with Canadian producers to maintain and grow their nationwide low carbon fuel use. The U.S. ethanol supply chain stands ready to meet the growing demand of Canadian consumers,” Ausdal said.

The CFR will significantly decrease transportation-related emissions by requiring fuel suppliers to lower the carbon intensity from fuels produced or used in Canada. This will lead to a 15 percent overall reduction in the carbon intensity of gasoline and diesel used in Canada by 2030, reducing an estimated 26 million tons of greenhouse gas (GHG) emissions. The CFR will take effect on Jan. 1, 2024.