Diesel fuel and home heating oil will be required to contain at least 2% biofuel content beginning July 1, the Canadian Broadcasting Corp. reported.
Federal Environment Minister Peter Kent made the announcement Thursday in Ontario, the CBC said on its website.
Kent said the rule will cut greenhouse gas emissions from transportation and heating fuel. Beginning last December, gasoline in Canada was required to contain 5% biofuel.
The move was applauded by the Canadian Renewable Fuels Association, which called it "good news for consumers, farmers and energy diversity."
"Biodiesel is a better way to drive and an innovative way to fuel our economy," said CRFA President Gordon Quaiattini,
"Biodiesel is a cleaner alternative to conventional diesel. It will help moderate price by adding to our fuel supply, create new jobs, and benefit farmers and drivers alike," he said in a statement.