According to a Library of Parliament primer, the federal government has been preparing for a biofuel push since the mid '90s - the Liberal Party era - through various economic incentives. In 2006 the Conservative government announced a strategy to have ethanol and biodiesel account for 5% and 2%, respectively, of what's sold at the pumps, which included $345 million for research and agricultural development. In 2007 that number was increased to over $2 billion, and a tax rebate for "green cars" was introduced. This is notable because the rebate was quietly removed from the 2008 budget. Which makes you wonder: why would it be better to funnel money into corn ethanol rather than low-emission vehicles? You might argue that it's simply a matter of spending efficiency, but the evidence would not be in your favour.
A recent report (among many similar ones) from the non-partisan C.D. Howe Institute is quite damning. It concludes that, even if corn biofuel has any positive net effect on greenhouse gas emission, the cost per tonne of CO2 reduction is seven times that of the alternatives. Furthermore the environmental impact of growing, harvesting, milling, transporting, and fermenting the corn is arguably worse than that of simply burning gasoline, and many of the published green-house gas (GHG) reduction figures are per litre consumed, which hides the fact that ethanol produces less energy, resulting in lower fuel efficiency. So even before considering all of the distribution-related factors, the decrease in GHG emissions is already slim. After considering other factors, it is possibly nil or even negative.
The main question on my mind is whether or not any of this was known when the federal government's policies were enacted. Most of the research cited in the Howe Institute report comes from the 2000-2007 period, which leaves a bit of uncertainty, but it seems clear that at the very least, there was significant debate about whether or not corn ethanol offered any benefits when the Conservatives made their big announcements. We have a great many ways to spend $2 billion with more clear-cut benefits. Why this?
Here are a few things we know.
- Canada's canola and soybean crushers were lobbying for the biodiesel move - precisely the one announced in 2006 - since well before the current federal government came into power.
- A side-by-side comparison between a map of 2006 federal election results and a map of agricultural land usage is fascinating, if unsurprising. Guess who voted Conservative?
- Food prices were already well into their rise in 2006 and corn ethanol was already a suspect at the time.
- Once upon a time, Kory Teneycke was head of the Canadian Renewable Fuels Association, a lobby group for Canada's biofuel producers. He has a history of involvement in politics, spanning all of Canada's major right-wing parties. His sister-in-law works as an assistant to the Prime Minister's wife. In 2007 he joined the Conservatives as Director of Research, and as of this month he's the PM's director of communications.
- Our Minister of Agriculture and Agri-Food, Gerry Ritz, has a personal relationship with ethanol industry lobbyists.
- Many of these lobbyists have ties with the Conservatives. I don't have a unified source for this, but look up some names and the trend starts to become pretty clear. This is not particularly surprising or contentious, given that conservative policies tend to be most favourable to industry, but it's still worth bearing in mind because conservative policies don't tend to favour the environment. When they do, I tend to wonder what else is going on.