Advanced Biofuels Canada Welcomes Federal Budget 2025 Focus on Strategic Industries and Energy Security

VANCOUVER, CANADA, November 4, 2025 /EINPresswire.com/ -- Advanced Biofuels Canada Association (ABFC) applauds the federal government for a budget that puts the economy first with a targeted focus on strategic industries.

Strengthening domestic production and supply chains is vital to Canada’s energy security which is inseparable from safeguarding Canada’s economic security. ABFC supports measures that anchor value-added investment and jobs in Canada and cut import dependence; at full output, Canadian biorefineries add over nineteen billion dollars ($19B) annually to the economy and support 30,000 jobs.

Building on the Prime Minister’s September 5th announcement to protect Canadian biofuel investments and workers from subsidized imports, ABFC welcomes the government’s commitment to implement the time-limited Biofuels Production Incentive and targeted amendments to the Clean Fuel Regulations. The announced incentive will provide $372 million in support for Canadian biodiesel and renewable diesel producers from January 2026 to December 2027, while the government works with provinces and territories on complementary measures and advances targeted amendments to the Clean Fuel Regulations.

Budget 2025 also detailed Canada’s ‘Climate Competitiveness Strategy’ and a set of tax measures to ‘supercharge growth’. The strategy is defined as a ‘central pillar of the government’s plan for Canada to become the strongest economy in the G7’ by focusing on ‘driving investment, not on prohibitions, and on results, not objectives’.

“Today’s budget and the Biofuels Production Incentive move Canada forward by diversifying and growing our domestic production of low emission fuels. Canada’s biomass-based diesel producers – and feedstock suppliers – need predictable, stable demand and fiscal conditions to counter market barriers from tariff and non-tariff trade barriers” said Fred Ghatala, President of Advanced Biofuels Canada. “With smart, targeted support for domestic producers, Canada can keep biorefineries operating, build resilient demand for Canadian feedstocks, such as canola. The investment signals in Budget 2025 should attract new capital to expand clean fuel production capacity in Canada; access to these measures can restore competitiveness of new capital investments, scale low-carbon fuel production, reduce reliance on imported fuels, and advance economic security through energy security.”

Recent analysis by Navius Research shows renewable fuel blending delivers measurable economic gains. In 2024, ethanol blending lowered wholesale gasoline costs in Canada by $1.7 billion, saving consumers about seven cents per litre ($0.07 per litre) and supporting household budgets and business competitiveness. Biofuel blending in diesel fuel modestly increased wholesale costs (by $0.025 per litre) while delivering significant climate benefits: the average carbon intensity of biomass-based diesel fuels is 86% lower than fossil diesel. When taken together, clean fuels provide fuel cost savings for Canadians.

ABFC will continue working with federal departments and with provinces and territories to provide data, analysis, and practical, actionable recommendations so that these new policy measures translate into stable operations, secure jobs, stronger rural economies, and durable, made-in-Canada supply chains that serve both our domestic needs and the growing global demand for clean fuels.

Advanced Biofuels Canada is the national industry voice for producers, distributors, and technology providers of non-fossil, low carbon, and sustainable fuel replacements to gasoline, diesel, jet, and marine fuels. Our members operate over 45 billion litres of low carbon fuel production capacity globally and are significant suppliers to renewable and low carbon fuel in Canada and worldwide. For more information, visit www.advancedbiofuels.ca.

Fred Ghatala
Advanced Biofuels Canada
info@advancedbiofuels.ca

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