In 2007, the Government of Canada committed to reducing Canada’s total GHG emissions by 20 percent from 2006 levels by 2020 (or approximately 280 megatonnes of carbon dioxide equivalent (MT CO2e) below forecasted 2020 levels), and biofuels was part of the strategy to reach that objective.
Federal blend mandates for biofuels was seen as a way to promote a more consistent approach to achieving significant reductions in emissions of air pollutants and GHGs.
To a lesser extent, the renewable fuels policies were also seen as a means to encourage rural economic development and help diversify revenue streams for agricultural producers who were highly dependent on export markets through increasing domestic demand for crops.