The Globe and Mail reports in its Saturday edition that in a bid to support Canada's canola farmers, Prime Minister Mark Carney announced a two-part strategy to boost the biofuel industry. The Globe's Adam Radwanski writes that the plan includes a $370-million biofuel production subsidy and new domestic-content provisions in the Clean Electricity Regulations. Additional measures, such as raising interest-free limits for canola advances and more funding for international agricultural marketing, aim to assist sectors affected by trade wars. Canola farmers have been impacted by U.S. trade protectionism, limiting the use of Canadian crops in biofuels.
They are also facing crippling tariffs in China, Canada's other major canola market, as retaliation for Canadian levies on Chinese electric vehicles. Details in Friday's announcement on boosting domestic demand amid trade issues were limited. However, two government officials explained that the measures aim to optimize current domestic biofuel production, using primarily Canadian canola feedstock, while encouraging long-term capacity growth. Advanced Biofuels Canada's Fred Bhatala says currently biofuel plants, such as Imperial Oil's, are operating below capacity.
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