This column is being written immediately after Canada’s federal election. The Liberals have secured a historic fourth term while Conservatives reached their highest vote count in 40 years. Yet, amid this, one of the most striking features of Canada’s 2025 election is how dramatically the narrative shifted: in particular, on climate.The passionate climate debates that dominated 2019 gave way to kitchen-table economics and trade concerns. Yet here’s the key insight: even as climate concerns fade from campaign speeches, Canada’s need for smart, growth-oriented clean fuel policies has never been more apparent. For the new Prime Minister, incoming lawmakers, investors and skeptics alike, ethanol presents a rare opportunity: rural economic growth that also offers environmental protection. The proof transcends politics.Consumer Carbon Tax Is Out&nbsp; A major change leading up to the election was the repeal of Canada’s national consumer carbon tax—a signature policy of Justin Trudeau—dismantled by his successor, Prime Minister Mark Carney. The former central banker, known for his climate finance leadership, argued that while carbon pricing had served its purpose, the time had come for a more practical approach. Few solutions have proven more practical than ethanol for both emissions reduction and economic growth. Case in point: the Clean Fuel Regulations (CFR) which ensures fuel producers lower their carbon intensity over time but allows flexibility in how to achieve it. Thanks to the ease and affordability of higher ethanol blending in the CFR, Canada’s ethanol blending has increased by 25%, and in 2024 it removed nine million tonnes of CO2 which is equivalent to taking two million cars off the road.Affordability and Rural Growth&nbsp; Crucially, ethanol’s environmental gains don’t come at the expense of consumers and affordability. Ethanol-blended fuel is often cheaper than straight gasoline, thanks to ethanol’s lower per-gallon price. Take Minnesota, where drivers saved $24 million USD in 2024 by filling up with E15 (15% ethanol), about 17 cents per gallon cheaper than regular unleaded. Canadian drivers enjoy similar savings with E10 at the pump.Ethanol also directly strengthens the rural economy. The newly formed Farms and Fuels Alliance (FFA)—which unites Canada’s dedicated ethanol producers and grain farmers—demonstrates how the domestic ethanol industry fuels strong rural growth. It creates jobs in small towns, generates tax revenue and produces co-products like high-protein animal feed that strengthen other agricultural sectors.Global Proof&nbsp; For those worried that Canada’s climate progress might stall without a carbon tax, look no further than other jurisdictions that cut transport emissions through strong ethanol mandates. The United States has achieved sizable reductions through its Renewable Fuel Standard, requiring biofuel blending in gasoline. Every gallon sold in America contains 10% ethanol (E10), cutting emissions while saving consumers money—all without a federal carbon tax. Brazil offers another compelling example. Their mandatory 27% ethanol blend and widespread use of flex-fuel vehicles cut 71 million tonnes of CO2 in 2022 alone. Like the U.S., Brazil achieved this through smart mandates rather than fuel taxes. Canada is now following a similar path.New Leaders and New Opportunities&nbsp; With Canada moving away from a consumer carbon tax, the focus must shift to smart, investment-driven measures like the CFR and other pro-ethanol investment tools. This new direction allows Canada to move past tax-based politics, reinforce its performance-based approach, and maintain ethanol’s role as a cornerstone of rural prosperity and economic growth in Canada, just as it is in the U.S. and elsewhere.Political priorities may shift, but the fundamental value of ethanol does not. Ultimately, what voters most want from any government is competence, making ethanol a blueprint of how practical, homegrown solutions can work across party lines and well beyond the ballot box.Author: Andrea Kent&nbsp; Past-President and Board Director&nbsp;&nbsp; Renewable Industries Canada

2025-05-01 - From Carbon to Commerce: What Canada's Federal Election Means for Ethanol (Ethanol Producer Magazine)

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Renewables Industries Canada discusses the country's shifting narrative on climate. 

From Carbon to Commerce: What Canada's Federal Election Means for Ethanol

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