A new proposal by the U.S. Environmental Protection Agency (EPA) to increase renewable fuel volume obligations (RVOs) is sending ripples through North America’s oilseed markets. While the jump to 5.6 billion gallons by 2026 exceeded industry expectations, it comes with a significant caveat for Canadian canola.
In this RealAg Radio interview, Shaun Haney speaks with Chris Vervaet, executive director of the Canadian Oilseed Processors Association (COPA), to unpack the implications of the U.S. policy parameters. “At a high level, seeing these RVOs be as large as they are is very good news,” he says. However, a proposed 50 per cent reduction in Renewable Identification Number (RIN) value for fuels made from imported feedstocks—including Canadian canola—poses a “significant competitive disadvantage” for Canadian crushers.
The proposed reduction in RIN value could dampen U.S. demand for Canadian canola oil in the biofuel sector, as domestic producers chase full-value RIN credits. Still, Vervaet believes opportunity remains. “There’s going to be room for canola oil to maybe take a bigger piece of the market share in the food business, for example."
While the rule is not yet finalized, its language includes direct references to Canadian canola, suggesting room for advocacy and potential revision. COPA is pushing for a “fortress North America” strategy—where Canadian feedstocks are treated on par with U.S. ones—to support integrated supply chains and ensure a level playing field.
Beyond cross-border concerns, Vervaet stresses the importance of strengthening Canada’s own clean fuel regulations to provide durable domestic demand. With millions of dollars in biofuel-related trade crossing the border daily, aligning U.S. and Canadian policies could prove vital to the sector’s long-term health.
Watch the full interview with Chris Vervaet above, or download the mp3 to listen later!
