https://www.manitobacooperator.ca/news-opinion/news/local/carbon-tax-could-translate-into-more-demand-for-canola/
Carbon tax could translate into more demand for canola
By Allan Dawson
Published: November 9, 2017
“Nobody like taxes… but there is also going to be some opportunities,”
as a result of Manitoba’s climate and green plan, Manitoba Canola
Growers Association (MCGA) president Chuck Fossay told the Keystone
Agricultural Producers’ advisory council Nov. 2.
While the plan includes a flat $25-a-tonne carbon tax starting sometime
next year, it also says if Manitoba diesel pumps had to include five per
cent biodiesel instead of the current two per cent, carbon emissions
over the next five years would drop by between 360,000 to 431,000 tonnes.
That would be the second- largest method of cutting emission behind the
carbon tax, which is projected to reduce emissions by 1.07 million tonnes.
While the carbon tax is projected to reduce emissions by 40 per cent,
adding more biodiesel would cut emissions up to 16 per cent, according
to the plan.
“If we can convince the government that the biodiesel portion should be
from canola, for example that’s a 1.9-million-tonne demand (based on
five per cent biodiesel across Canada)…” Fossay said. “There’s a good
chance we could see our (canola) prices go up.”
Someone suggested a higher biodiesel requirement could result in higher
diesel prices, but Fossay noted “marked” farm fuel is exempt from the
carbon tax.
In an interview later he said canola-based biofuel is cheaper to make
than drilling for, extracting processing petroleum into diesel.
“We think it (canola-based biodiesel) will go a long ways to helping
reduce carbon emissions that come from diesel fuel,” he said.
“By going to the B5 level (five per cent biodiesel) the carbon emissions
will be reduced I believe by three to four megatonnes a year. So that
goes a long ways to achieving the 80-megatonne targets that the
(federal) government has… by 2022.”
The MCGA has not taken a position on Manitoba’s plan, but will discuss
it at an upcoming board meeting, Fossay said.
The MCGA does favour more biodiesel, he said.
“Certainly any time we can find a new market for canola seed it’s a
benefit to producers across Western Canada,” Fossay said.
KAP also supports regulations requiring more biodiesel be used, KAP
president Dan Mazier said in an interview after the meeting.
“It will make a huge difference,” he said.
