Numerous policies have been put in place since the 1975 oil crisis in order to promote the use of Renewable Fuels in the United States, Canada and Europe. In Canada, these included the implementation of excise taxes exempting propane and natural gas which was extended to ethanol made from biomass and methanol in 1992. The federal government also announced their renewable fuels strategy in 2006 which proposed four components: increasing availability of renewable fuels through regulation, supporting the expansion of Canadian production of renewable fuels, assisting farmers to seize new opportunities in this sector and accelerating the commercialization of new technologies. These mandates were quickly followed by the Canadian provinces:
BC introduced a 5% ethanol and 5% renewable diesel requirement which was effective by January 2010. It also introduced a low carbon fuel requirement for 2012 to 2020.
Alberta introduced a 5% ethanol and 2% renewable diesel requirement implemented April 2011. The province also introduced a minimum 25% GHG emission reduction requirement for qualifying renewable fuels.
Saskatchewan implemented a 2% renewable diesel requirement in 2009.
Additionally, in 2006, the Canadian Federal Government announced its commitment to using its purchasing power to encourage the biofuel industry. Section three of the 2006 alternative fuels act stated that when it is economically feasible to do so-75% per cent of all federal bodies and crown corporation will be motor vehicles.