Federal Biofuel Production Incentive Now in Effect

The federal government’s Biofuels Production Incentive is now in effect, marking a shift from policy announcement to on-the-ground support for Canada’s domestic renewable fuel sector as it grapples with intensifying trade pressures and global competition. Announced by Prime Minister Mark Carney on Sept. 5, 2025, the incentive officially took effect Jan. 1 and is designed to stabilize and protect Canadian biofuel production capacity. The program will provide more than $370 million ove