Manufacturing and Production

Domestic fertilizer production is essential to Canadian agriculture.

Safeguarding Domestic Fertilizer Production and Enhancing Competitiveness

Fertilizer production is an emission-intensive trade-exposed (EITE) industry, meaning the industry requires significant energy and competes globally in a highly competitive market. This makes the sector sensitive to carbon leakage, global pricing, trade dynamics, and government climate policies that impact the national and international competitiveness of the industry.

Canada is a global leader in low-emission fertilizer production. Our potash is produced with 50 per cent lower greenhouse gas emissions intensity compared to other countries, and our nitrogen fertilizers are manufactured with an average net emissions intensity 30 per cent lower than other jurisdictions. To stay competitive and prevent carbon leakage to other jurisdictions, Canada needs realistic, stable regulations and targeted investment incentives.

Key Issues

Enhance Competitiveness

Canada leads in sustainable fertilizer production, but the industry competes in a global marketplace against other countries that don’t face the same environmental regulations. To protect Canada’s domestic production, and to protect from carbon leakage, policies and regulations must recognize the competitiveness challenges of mature hard-to-abate, food-security-critical sectors.

Prioritize Regulatory Efficiency and Certainty

Investment in decarbonization technologies requires substantial financial resources and lengthy timelines. One of the biggest challenges facing investment is regulatory uncertainty. Reducing regulatory inefficiency and providing long-term certainty are essential for unlocking investment and strengthening the sector here in Canada.

Deliver Investment Tools That Put Production First

Fertilizer production is a global industry, and attracting investment in Canada requires smart incentives that attract investment while benefiting Canada and our economy. Competitive tax policies and targeted incentives that make Canada competitive with other jurisdictions will safeguard domestic production and effectively incentivize investment in decarbonization technologies.