A report, entitled “Scaling Up: The Promise and Perils of Canada’s Biofuels Strategy” by Associate Professor Werner Antweiler of UBC Sauder School of Business for C.D. Howe Institute stated that Canada has significant potential to produce biofuels due to its vast agricultural resources and experience with conventional fuel production. Biofuels can help reduce greenhouse gas emissions and improve energy security. The report is relevant with CERC’s theme on Bioenergy Systems & Bioenergy.
Key highlights taken directly from the report are:
- Canada has great potential to produce biofuels to aid in the transition to a low-carbon economy, but developing the full potential requires using sustainable feedstocks and driving down production costs.
- Canada’s biofuels industry is evolving from first-generation fuel, made from sugar crops, starch crops (e.g., corn), oilseed crops (e.g., soybean, canola), and animal fats, to secondgeneration, made from non-food crops (energy crops such as perennial grasses and fastgrowing trees) and waste biomass.
- Next-wave products like sustainable aviation fuel, renewable diesel, and renewable natural gas all have unique challenges for scaling up production and reducing costs. Recognizing the limitations of industrial policy and letting the market drive innovation will avoid costly subsidies and mistakes.
- Biofuel mandates in British Columbia, and at the federal level, set targets for carbon intensity reductions and employ rigorous life-cycle models to assess the carbon intensities of different fuels. Applying these principles nationwide, harmonizing approaches, and reducing the potential for trade frictions, will create a level playing field while incentivizing the most sustainable biofuels.
For BC-specific context of the report, Business in Vancouver (BIV) published a news article, citing the aforementioned report. BIV reporter interviewed Dr. Antweiler for his take on Canadian biofuel policies and politics.