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This story was first published on RealAgriculture.com on Oct. 6, 2026.
Canadian-made ethanol is losing out on market share because of cheaper U.S. imports, and that needs to change, according to the Farms and Fuels Alliance.
The Alliance is calling for a minimum 1.4-times credit multiplier for Canadian-made ethanol, and that the changes required to make that happen be finalized before the end of 2026.
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In a letter to Prime Minister Mark Carney, the Farms and Fuels Alliance joined Renewable Industries Canada in calling for targeted amendments to the Clean Fuel Regulations, which would address a competitiveness gap the government identified more than a year ago.
“Canada’s ethanol market is growing, but more of that growth is going to imports instead of Canadian-made ethanol. The government’s promised fix has still not been published,” the group said in a news release.
The Farms and Fuels Alliance and Renewable Industries Canada are calling for a minimum 1.4x credit multiplier for Canadian-made ethanol under the Clean Fuel Regulations. The measure would help address a growing competitive imbalance: U.S. ethanol entering Canada benefits from meaningful production support through the U.S. 45Z Clean Fuel Production Credit while competing on par with Canadian ethanol in Canada’s own market, the group says.
Last month, the United States announced Canada is on track to become a billion-gallon (four-billion-litre) ethanol export market. Without a timely and sufficient Canadian policy response, growing demand created by Canadian policy will increasingly support production, agricultural demand and investment outside Canada.
“A minimum 1.4x multiplier is a practical, targeted response,” said Andrea Kent, vice president of policy and external relations at Greenfield Global Inc. “It recognizes the changed North American competitive environment and gives Canadian ethanol a fair opportunity to compete for market share created by Canada’s own regulatory framework.”
“For farmers, the stakes are significant,” said Jeff Harrison, chair of Grain Farmers of Ontario.
“Ontario ethanol production accounts for one in three bushels of corn grown in the province. For consumers, ethanol is also delivering value: in 2024, ethanol blending reduced Canadian wholesale gasoline costs by an estimated 7.4 cents per litre.”
