Canada’s Ecofiscal Commission comes out swinging against biofuels again

In Canada, the Ecofiscal Commission has come out with another scathing report against biofuels subsidies and blending mandates, this time favoring carbon taxes over other policy measures to achieve decarbonization in transportation. Its report last year estimated CO2 reduction costs C$180 to C$185 per metric ton using ethanol and C$128 to C$165 per ton using biodiesel but the new report says in addition to the carbon prices being expensive without clear benefits, that aligning carbon reduction with rural development does not really make sense and is a stretch under the “two birds with one stone” principle.