Research
Biofuels in Canada 2026: Tracking biofuel consumption, feedstocks and avoided greenhouse gas emissions
September, 2026
Summary
Navius Research has released the 2026 edition of “Biofuels in Canada”. This analysis uses public data to catalog the volume of transportation biofuels consumed in each Canadian province, while estimating the impact of biofuel consumption on greenhouse gas emissions and transportation energy costs from 2010 to 2024, with an estimate for 2025. It includes a similar analysis of fuel and GHG impacts resulting from the use of light-duty electric vehicles and co-processed renewable fuels.
Highlights:
- Renewable fuel consumption in Canada increased by 6% in 2025, on top of the 10% increase in 2024.
- In 2025, the renewable fuel content in gasoline and diesel in Canda was well above the regulated minimum levels because of the fuel CI reductions required by provincial and federal regulations.
- Ethanol made up almost 10%vol of the gasoline pool, while biomass-based diesel content has grown to more than 7%vol.
- Renewable fuel consumption in Canada has increased cumulative consumer fuel costs by 0.12% from 2010 to 2025.
- Over-taxation of renewable fuels, related to their lower energy density, cost consumers an additional $0.5 billion in 2025, or $5.7 billion since 2010. If taxes were charged per unit of energy, renewable fuel consumption since 2010 could have saved consumers a total of $3.7 billion rather than costing them $2.0 billion.
- The GHG benefit of clean fuel consumption in Canada has grown substantially in the past few years. Avoided emissions were 13.1 MtCO2/yr in 2024 and 14.2 MtCO2/yr in 2024, double what they were in 2021.
- Renewable fuel supply has reduced retail fuel prices, on average across the gasoline and diesel pool. For example, since the start of the CFR in 2023 until the end of 2025, the associated renewable fuel supply should have reduced prices by an average of 2.4 ¢/L relative to a scenario without renewable fuel
Click the image above to download the report.
This study was commissioned and funded by Advanced Biofuels Canada.
To learn more about this research, please contact Michael Wolinetz.
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