Bio-product Market Development Strategy A Scoping Study on Federal Policies for Creating Market Demand for Bio-products in Canada
A Report Prepared for Industry Canada
March 15, 2005
Amy Taylor Marlo Raynolds Matthew Horne
Contact Amy Taylor, 403-678-3355, [email protected]
Table of Contents
Introduction ...... 2 Background...... 4 Methodology ...... 5 Barriers ...... 6 Existing Policies ...... 9 Policy Options ...... 16 Policy Evaluation...... 18 Conclusions and Future Research...... 37 Relevant References ...... 39 Appendix: Biomass Resource Potential in Canada ...... 42
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Industry Canada Report: Market Development for Bio-products
Introduction
Bio-products are a wide range of industrial and consumer products that penetrate many sectors of the economy. They are derived from biomass, which is a renewable feedstock, and have the potential to result in significant environmental and socio-economic benefits. With 10 per cent of the world's forests, Canada is well endowed with biomass resources. The BIOCAP Canada Foundation1 estimates that Canada’s reserve of timber resources is equivalent to 69 times its annual consumption of fossil fuels. On an annual basis, the renewable resource residues from forestry, agriculture, and related manufacturing industries are equivalent to approximately 18–27 per cent of the energy Canada derives from fossil fuels.2 A recent study by Agriculture and Agri-Food Canada indicated that a 1 per cent per annum increase in bio-fuel utilization over six years across Organization for Economic Cooperation and Development (OECD) countries could increase the net cash income of Canadian farmers by $2 billion.3
Environmental benefits associated with increased penetration of bio-products have the potential to be significant as reductions in energy use and toxic emissions by chemical process industries are achieved.4 A series of case studies published recently by the OECD reported the following range of benefits:5