At the start of 2024, I set out to focus my columns on life cycle carbon assessment (LCA), a topic that might seem unusual for a layperson like me. Yet, in over a decade of work on renewable policy, I’ve seen LCA transform from a niche technical field into a cornerstone of policy discussions in both Canada and the U.S.
Carbon-focused fuel and investment policies increasingly rely on LCA. Properly done, LCA spans supply chains, unifies markets, and sharpens investment opportunities for businesses and lawmakers aiming to improve environmental performance. Despite differing policy approaches, the growing significance of LCA signals a fundamental shift in how governments and investors assess sustainability.
Both Canada and the U.S. have designed renewable fuel policies based on carbon intensity. Canada’s Clean Fuel Regulations (CFR), replacing its renewable fuels standard, uses LCA to guide credit generation and compliance. This emphasizes reducing “well-to-wheel” emissions, allowing Canadian ethanol producers to align with international low-carbon markets.
In the U.S., the Inflation Reduction Act (IRA) extends LCA’s role, using it not just for compliance but also as a direct investment driver. The IRA’s tax credits for low-carbon fuels reward reductions in carbon intensity, creating incentives for producers to invest in cleaner technologies. These incentives are crucial for further decarbonizing ethanol and scaling up projects like sustainable aviation fuel (SAF) and e-methanol for marine transportation.
For ethanol producers, these policies—and their differences—are critical to staying competitive. In Canada, the CFR supports market stability and trade, while in the U.S., the IRA’s investment focus could spark rapid innovation and capital inflows. Both offer the policy reliability producers need.
At last month’s 4th Annual U.S. and Canada Biofuels Summit in Washington, senior biofuel and agriculture leaders from both sides of the border highlighted the need for clarity and alignment in biofuel policy. While the CFR and IRA show progress, differences suggest there are lessons to be learned.
The future of ethanol will be shaped by our industry’s ability to keep science-based carbon intensity at the forefront. Both CFR and IRA are steps in the right direction, but our success hinges on LCA models that assess and reward investments reducing emissions. For ethanol producers, this means staying engaged, innovating, and being open to cross-border collaboration. As the ethanol industry navigates evolving low-carbon policies, harmonizing efforts across borders and LCA models is key. Science-based assessments validate that biofuels are produced and consumed responsibly. LCA models must keep recognizing achievements in responsible growing practices and agricultural innovation.
Finally, policy and science must work in tandem. Refining LCA models to keep pace with innovation will attract investment and drive technological advancement. The ethanol industry in Canada and the U.S. is capable—now is the time to demonstrate our coordination.
Author: Andrea Kent
Past President and Board Member, Renewable Industries Canada
Vice President of Industry and Government Affairs,
Greenfield Global Inc.