Mr. Speaker, that is a hard act to follow. Our illustrious Minister of Agriculture and Agri-Food is certainly a good advocate for the farmer. He insists on putting farmers first, as does Bill C-33. I am, like the minister, very honoured to speak to Bill C-33 today.
It was about a year ago that the federal government first announced that it intended to introduce regulations as part of a national renewable strategy.
The regulations would require a 5% renewal content in gasoline by 2010. We also signalled our intention to develop a similar requirement of 2% for diesel fuel and heating oil by 2012.
Bill C-33 will enable the government to work with interested stakeholders as we develop regulations for renewable fuel content.
Approximately one-quarter of Canada's greenhouse gas emissions come from the transportation sector. The introduction of 5% renewable fuel content in gasoline and a further 2% in diesel will help significantly in reducing harmful greenhouse gas emissions from the transportation sector.
The volume of renewable fuel required under this initiative is expected to contribute to achieving a four megatonnes reduction in greenhouse gas each and every year. That is the greenhouse gas reduction equivalent, as the minister said, of taking approximately one million cars off the highways. It is the same effect.
I believe that the 5% average renewable content in gasoline and the 2% renewable fuel content in diesel fuel and heating oil are ambitious targets. There is no question. Together they equate to almost 3 billion litres of renewable fuels per year.
The government's renewable fuels initiatives are very important, for not only will they have a significant impact in terms of reducing emissions but they will also provide much needed financial support to Canada's farming industry. As we know, this minister and this department are here to put farmers first.
Industry is already moving quickly to ensure that it secures its place in what will become a very lucrative market, but industry cannot do it alone. That is why in the last federal budget the Prime Minister set aside $1.5 billion over seven years for biofuel producers to assist in the development of our government's long term renewable fuels strategy.
On November 2 my two caucus colleagues, the Minister of the Environment and the member of Parliament for Leeds—Grenville, were in Johnstown, just an hour from here, where they announced that the Government of Canada was contributing $15 million to assist GreenField Ethanol with construction of an ethanol plant in Johnstown, Ontario.
According to GreenField Ethanol estimates, this new facility will remove an estimated 370 tonnes of carbon dioxide from being emitted into the atmosphere each and every year and it is expected to remove 9.25 million tonnes of carbon dioxide over the life of the plant.
Shortly thereafter, the hon. Parliamentary Secretary to the Minister of Finance was in Aldersyde, Alberta, representing the Minister of Agriculture and Agri-Food, where he announced that the federal government through the federal ecoagriculture biofuels capital initiative would contribute $638,000 to help build a biodiesel plant in that area.
For those who are not familiar with the ecoABC initiative, it is a federal $200 million four year program that provides repayable contributions for the contribution or expansion of transportation biofuel production facilities. It is designed to provide an opportunity for agricultural producers to diversify their economic base and participate in the biofuels industry through equity investment ownership in the biofuels production facilities.
These are but a few examples of the government taking action to reduce our dependence on greenhouse gas emitting fossil fuels and promoting a cleaner biofuels industry.
This is an exciting time for the biofuels industry. I expect, as demand for biofuels increases and as Canadians and industry adapt to this new product and technology, we will see a significant rise in the production of biofuels which will mean a huge financial boost to our farming community and, as I mentioned, a significant decrease in our greenhouse gas emissions.
Canada is not alone in turning to renewable fuels as a means of reducing greenhouse gas emissions. The United States has regulations requiring 4.7% renewable fuel content in gasoline and is moving to higher levels. The European Union has already set a 5.7% target to be reached by 2010.
This government has never claimed that its biofuel initiative will be the ultimate solution to reducing greenhouse gases linked to climate change. What we have said is that it is an important piece of that puzzle.
In addition to our actions on renewable fuels, these programs include eco-energy initiatives, the eco-transport strategy, the trust fund for clean air and climate change, and support for public transport. Each of these initiatives on its own will not achieve our desired objectives. However, together they will provide Canadians and our international partners with the kind of results that they had demanded and expected from the previous government but never received, which explains why Canada is presently at 33% above Kyoto targets.
In summary, the Minister of the Environment and all members of this government are committed to working on ways to lower carbon dioxide emissions in Canada. This bill is not only good news for our environment, it is also good news for our farmers who will benefit from this new market opportunity.
Farmers around the world are harnessing the potential of biofuel development and our new government is proud to help Canadian farmers lead the way. I am looking forward to having the support of all members opposite.