Right now, the Canadian government's only incentive that supports biodiesel
is a four-cent per liter discount at the pump. That's good, but not enough, as Lyndsey Smith writes in a lengthy discussion of biodiesel in Canada
over at AgCanada
. Smith compares the need and potential for biodiesel in Canada with the situations in the U.S. and Europe and finds that one role Canada could play in a future biodiesel economy is as an exporter to America and European countries. But only if the government gets in gear. If the biodiesel production infrastructure doesn't get built in Canada pronto, Canadians could end up importing biodiesel (made from Canadian canola). Increased biodiesel consumption in Canada will also help the country meet its Kyoto Protocol commitments to reduce greenhouse gasses.