Thank you for inviting me here.
My name is Steve Jurgutis. I'm the DG, the policy planning and integration director, at Agriculture and Agri-Food Canada.
I'd like to talk to you a little bit about the critical role of the agriculture and agri-food sector in producing low-carbon fuels in Canada.
The Canadian agriculture and agri-food sector produces healthy food that supports a healthy environment and a healthy economy. The domestic production of low-carbon fuels represents an important opportunity for farmers and will help the agriculture sector contribute to Canada's climate change commitments. Low-carbon fuels derived from agricultural feedstocks are a commercially viable, made-in-Canada way to meet Canada's ambitious climate plan. The agricultural biofuels sector in Canada is a mature, stable market for Canadian farmers.
Clean fuel regulations built on current renewable fuel regulations will accelerate the production and use of low-carbon fuels, including agricultural-based clean fuels. The agriculture sector is well placed to help meet that demand and play an important role in the transition to clean fuels in Canada. Increased demand combined with expected increased investments in Canadian low-carbon fuel refining capacity will have an important positive impact on Canadian farmers by allowing them to diversify their markets, promoting value-added opportunities and encouraging rural renewal.
While traditional biofuel production derived from grains, oilseeds and animal by-products is expected to continue to play an important role in meeting clean fuel demand, agricultural wastes and by-products can also be transformed into low-carbon-intensity fuels. For example, there are over 60 anaerobic digestion facilities in operation today in Canada, transforming manure and food processing waste into biogas and renewable natural gas, which can be used on site to generate heat and electricity or be sold to natural gas or electricity grids.
The international export market for low-carbon fuels and feedstock also presents significant opportunities for the Canadian agriculture sector and for value-added products. In 2020, Canada's exports of canola seed to the EU were valued at $1.3 billion and primarily used in biodiesel production in France, Germany, Belgium and Portugal.
I will continue in French.
Low-carbon fuels are part of a broader overall effort the government and the agriculture sector are making to continue to improve the sector's sustainability. Canadian farmers are responsible stewards of the land and the government recognizes they are an important part of the climate change solution.
The agriculture sector in Canada is a world leader in innovating and adopting new technologies to improve environmental performance, reduce greenhouse gas emissions, and store carbon in agricultural soils. The government is investing in programs, science, and innovation to develop solutions that will help the sector grow sustainably and create better opportunities for farmers, businesses and Canadians. The Canadian agricultural partnership provides up to $414 million in cost-shared funding with the provinces and territories to help producers address soil and water conservation, reduce greenhouse gas emissions, and adapt to climate change.
As part of this partnership, Agriculture and Agri-Food Canada supports two clusters of research projects that work on low-carbon fuels and other bioproducts, for a total of $20 million. Canada's agriculture emissions represent 10% of Canada's greenhouse gas emissions and as a result of improved practices and efficiencies, agriculture emissions have remained relatively stable for two decades, even as production has increased.
For over 20 years, Canadian farmers, particularly in the Prairies, have increasingly adopted no-till and conservation tillage seeding techniques which has helped to transform agricultural soils in Canada being a significant carbon sink since 2000.
In closing, I would like to reiterate that the agriculture sector wants to continue to play an important role in meeting our climate change objectives. The clean fuels opportunity ahead of us will allow the sector to build on its solid foundation of biofuel feedstock production while creating economic growth and promoting renewal across the country.
Thank you for your time. I'm happy to take your questions.