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The Canadian government has announced a $370 million biofuels production incentive aimed at supporting the domestic biofuels industry and protecting canola farmers from Chinese tariffs. However, experts raise concerns that the subsidy may undermine existing clean fuel regulations by failing to consider the carbon intensity of various biofuels.

While the incentive seeks to bolster production and competitiveness against U.S. counterparts, critics argue it could lead to unintended environmental consequences. The initiative coincides with Prime Minister Carney's efforts to address pressures from the canola industry and fossil fuel interests.