As first reported by Blacklocks, a government audit revealed a government subsidy scheme to promote the use of biofuel failed to reach production goals in all metrics. 

The ten year, $965 million Department of Natural Resources program saw the taxpayer help establish biofuel producers and pay them for the production of ethanol and biodiesel.

Producers received 10 cents for every litre of ethanol produced and 20 cents for every litre of biodiesel produced from the taxpayer.

“The program was expected to contribute to the establishment of a self-sufficient industry,” said the audit.

“Evidence is equally inconclusive as to the extent to which the renewable fuels industry has become competitive as a result of the program.”

The ambitious plan saw over 100 applicants looking to enter the generous subsidy scheme, compared to only 30 targeted. Of the 38 companies which received subsidies only 20 met their goals, two went bankrupt and twelve were “non-compliant.”

The overall production targets were not even close to being met. The 38 companies produced 300 million litres less ethanol and 70 million litres less biodiesel than expected. 

True North’s Leo Knight believes the government is meeting the sobering reality that these carbon emissions schemes rarely reach their goals.

“Typical of this government’s mismanagement. Their green dream fanaticism doesn’t work in the real world,” he said.

As the audit did not measure the environmental impact of the program, it is impossible to measure how much Canada’s carbon emissions were actually reduced as a result.

The MacDonald-Laurier Institute summed up the expensive and unsuccessful subsidies scheme in more certain terms, highlighting the low return on investment for the taxpayer.

“Canada’s biofuel support programs have been a dismal failure. The policy has failed to deliver value to Canadian taxpayers,” said a press release from the group.

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