December 3, 2007
Quebec City, Quebec

Check against delivery

Greetings everyone.

It's a thrill to be here in Quebec City and to join you at this important summit on renewable fuels.

And I bring you greetings on behalf of the Honourable Stephen Harper, Prime Minister of Canada.

Thank you to the Canadian Renewable Fuels Association for hosting this Summit and for the excellent work you do year round in promoting the renewable fuels industry in Canada.

You are an important partner with government in helping us achieve a vibrant biofuels industry - one that benefits our farmers, our economy and our environment.

It's a great honour for me to serve Canadian farmers as Minister of Agriculture.

It's a big job, and I'm coming to it with this bedrock principle: in making every decision on every policy, I'm fully committed to putting farmers first.

It's farmers first because we have to have a vibrant and sustainable farm gate.

When farmers succeed, the whole sector succeeds.

Hard working farmers know how to make the most of economic opportunities.

And this Government is working hard to help farmers to grow and succeed through innovation and technology.

This summit is focused on one of the most exciting opportunities in Canadian agriculture today.

Biofuel production means new markets for farmers, new jobs in our towns and cities, and a cleaner-burning renewable fuel to protect our environment.

The economic upside for farmers is obvious: more buyers bidding for their crops means they'll get a better return for their effort and investment.

But the economic upsides go beyond the simple buying and selling of commodities.

Transportation is one of the largest expenses farmers face as they move their crops across the country and around the world.

When a biofuel plant opens in a farmer's backyard, those transportation costs disappear.

The ultimate winners are Canadians: the air we breathe, the water we drink, the land that grows our food will be cleaner.

Biofuels will increasingly provide a cleaner burning, renewable energy source for all Canadians.

As the Prime Minister said, the global appetite for more environmentally friendly sources of energy is growing by the day.

The world is waking up and realizing that the amount and kind of energy we use will have a very real impact on future generations.

It's a responsibility the Government of Canada takes seriously and it's the reason we're taking action.

Canada is an "energy superpower".

We rank fifth in the world in total energy production.

And we are on our way to becoming a clean energy superpower.

This is a responsibility this Government takes very seriously.

But we have to be smarter about the way we consume energy and we also have to be smarter about the kind of energy we consume.

The Government of Canada is taking decisive action toward a smarter, greener energy by requiring biofuel content in gasoline, diesel and heating oil.

As you know, we've promised to regulate:

• 5 per cent biofuel in gasoline by 2010; and,
• 2 per cent biofuel in diesel and heating oil by 2012.

Those are realistic targets that will make a huge difference for our environment.

That biofuel requirement will be the equivalent of taking one million cars off the road.

To hit this target, Canada will need to produce almost three billion litres of renewable fuels per year.

Supplying that demand will be a big job for the biofuel industry, but you folks are already proving you're up to the task.

Canadian biofuel producers are already putting out 800 million litres per year and we're well on our way to producing two billion litres.

This kind of expansion will represent a tremendous economic opportunity for Canada's 61,000 grain and oilseeds producers.

These are aggressive goals, but we know they're necessary and achievable.

This afternoon the Government will make our biofuel goals a reality when we introduce the Renewable Fuels Bill in Parliament.

The Bill will amend the current Canadian Environmental Protection Act to enable the government to regulate renewable content in fuel.

Amendments to the Act will bring us a step closer to meeting our biofuel targets in 2010 and 2012.

The people at this event already understand the tremendous potential of biofuels.

You know that biofuels offer a cleaner-burning, renewable source of energy.

Yet some still question the environmental benefit of biofuels.

Government of Canada studies are crystal clear: biofuels reduce greenhouse gas emissions.

When you compare oil rigs to the green energy produced in a farm's field, the benefit to the environment becomes obvious.

The full life cycle of ethanol production, from field to fuel tank, produces 40 per cent fewer greenhouse gas emissions than gasoline's life cycle.

When Canadian canola crops are converted into biodiesel, the benefit is even more dramatic with a 60 to 80 per cent reduction in emissions.

For these reasons and more, our Government of Canada is proud to be delivering real action on biofuels.

We recently announced $200 million in funding for the ecoAgriculture Biofuels Capital initiative, designed to encourage agriculture producer investment in biofuels production facilities.

We've announced the first two contribution agreements under this program for a new biodiesel plant in Alberta and an ethanol plant in Saskatchewan.

We expect to sign multi-million dollar agreements with several other plants with farmer participation in the very near future, as interest in this funding is very high.

These new plants are great news for our farmers - providing a new market source for their wheat, corn, canola and potentially other crops.

And, having plants in our rural communities will lower transportation costs that too often cut into our farmers' profits.

As I mentioned a moment ago, this Government understands that biofuel technologies are growing by leaps and bounds every day.

We're investing in the Next Generation of Biofuels with $500 million in new technologies that will take waste products such as wheat straw and wood chips and turn them into valuable commodities to create cleaner-burning, renewable fuels.

As well, we're investing $20 million in the Biofuels Opportunities for Producers Initiative.

This initiative provides assistance to more than 120 biofuels-related projects across Canada that include farmer representation.

In total, we'll be investing $2.2 billion over nine years in biofuels development.

So, as a government, we're working hard to deliver this plan to build a strong biofuels industry in this country.

The Canadian Renewable Fuels Association is our major partner in getting information about programs and incentives to our farmers and the sector.

Announcement

With all of this in mind, I'm pleased to announce the program's details and eligibility requirements for the ecoEnergy Renewals Initiative the Prime Minister launched in January of this year.

This $1.5-billion initiative will encourage greater private sector investment in biofuel production and support a competitive renewable fuels industry in Canada.

Producers of ethanol and other renewable alternatives to gasoline will be eligible for incentives of up to 10 cents per litre of production.

Biodiesel producers can receive incentives of up to 20 cents per litre.

Incentive rates will be based on average industry profitability.

When market conditions are weak then the government will be there to provide support, but when market conditions improve, the industry will prosper on its own.

These incentives are just one more way this Government is helping farmers participate in the growing biofuels industry.

The program will run from April 1, 2008 to March 31, 2017.

Producers are eligible for seven years of support within this time period.

The Program will be administered by Natural Resources Canada. Program details are now available on the Natural Resources Canada website.

Folks, this Government is taking real action for a healthier environment and a stronger economy for all Canadians.

And we need entrepreneurs, such as many of you here, to take up the incentives we're offering and build the biofuels industry over the next few years.

Together, I am confident we can succeed.

Conclusion

A strong biofuels sector will contribute to a stronger foundation for farmers …

… lead to better usage …

… and protect our environment for future generations.

Canada's investment in biofuels is a win-win - it's good for the environment and it's good for farmers.

I'm proud that this Government is building a strong foundation for biofuels production in Canada.

New ventures can create opportunities and challenges, especially in an integrated industry like agriculture.

Farmers around the world are harnessing the potential of biofuel development and this government is helping Canadian farmers lead the way.

I look forward to an exciting future for farmers, our environment and our economy.

And I look forward to building on this future by putting Farmers First.

Enjoy your time at the Summit.

Thank you!