The Government of Canada is committed to expanding the production and use of cleaner, renewable biofuels such as ethanol and biodiesel. The Government has a four-pronged biofuels strategy in order to:

• reduce the greenhouse gas (GHG) emissions resulting from fuel use,
• encourage greater production of biofuels,
• accelerate the commercialization of new biofuel technologies, and
• provide new market opportunities for agricultural producers and rural communities.

On July 5, 2007, Prime Minister Stephen Harper announced one key aspect of this strategy, the ecoENERGY for Biofuels Initiative, which will invest up to $1.5 billion over 9 years to boost Canada's production of biofuels.

On December 3, 2007, while speaking at the 4^th Annual Summit of the Canadian Renewable Fuels Association, the Minister of Agriculture and Agri-Food officially announced details and eligibility requirements for the ecoENERGY for Biofuels program, which supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. ecoENERGY for Biofuels will invest up to $1.5 billion over nine years in support of biofuels production in Canada. Recipients will be entitled to receive incentives for no more than seven consecutive years. The program runs from April 1, 2008 to March 31, 2017. Natural Resources Canada is administering this program

The initiative will provide operating incentives to producers of renewable alternatives to gasoline and diesel based on production levels and other factors. It will make investment in production facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices.