A government briefing note recently accessed under freedom-of-information law concludes that Canada’s flex-fuel subsidization scheme is not in the interest of the environment.

The problem is the same as in the USA’s ‘dual-fuel scam’. The government has been giving rebates to consumers who purchase of ‘flex-fuel’ vehicles – cars which can run on normal gasoline or on E85, a blend of 85% ethanol and 15% gasoline. But there is no guarantee that any of these cars will ever use E85. And in the case of Canada, where the high-blend ethanol fuel is available in only four gas stations, it is certain that most of this subsidized private transport simply makes life cheaper for drivers using fossil fuels.

The briefing note, prepared for Natural Resources Minister Lisa Raitt, recognizes this problem explicitly. It concludes that the subsidies are not tied to actual GHG emissions and the government should therefore be cautious in making any such claims.