A CO-FUNDED report by Australian Export Grains Innovation Centre (AEGIC) and Australian Oilseeds Federation (AOF) members has mapped greenhouse gas (GHG) emissions for the entire canola lifecycle to ensure Australian canola growers retain access to the valuable European Union (EU) market.
The $280,000, two-year project was undertaken by the CSIRO and the report was delivered to the European Commission last week.
Currently, biodiesel suppliers need to demonstrate a 35pc GHG emission saving over mineral oils.
As of January 1, 2018, this savings increases to 50pc, thereby forcing biodiesel resellers and their suppliers to show that biofuels feedstock sourced in the process has been sustainably grown and can meet the threshold in order to claim biodiesel rebates.
AEGIC Economics and Business Analysis manager Professor Ross Kingwell said it was an important piece of research for the Australian canola industry.
"Rather than each funding for their own report exporters will be able to refer to this country report which will allow for AU canola to pass regulatory scrutiny and meet EU's GHG emissions regulations," Professor Kingwell said.
Australian Oilseeds Federation chief executive officer Nick Goddard said Australia would be the first country outside of the EU to provide its GHG report.
Mr Goddard said the report involved ascertaining all GHG emissions across the entire lifecycle of canola production on a state-by-state basis, including farming practices, the manufacturing of fertiliser and chemicals and application rates, transportation to ports and export to markets.
"The largest single contributor to GHG emissions in the canola supply chain is the agricultural production," he said.
He said as well as ensuring access to the highly valuable European market, the research could also place a greater attraction on Australian canola due to its lower GHG emissions.
"Canola grown in the EU is grown on richer soils with high rates of fertiliser and they also till their soils, which releases nitrous oxide.
One tonne of nitrous oxide is equivalent to 298 tonnes of carbon dioxide, which is the makes up nearly 75pc of Australia's total greenhouse gas emissions.
"The expectation is that Australian canola will have lower GHG values than domestic crop and therefore biodiesel suppliers will actually need Australian or Canadian canola to blend to get below the 50 threshold," Mr Goddard said.
"This conceivably could put a premium or greater attraction towards our product."
He said Europe continued to have a "strong preference" for non-genetically modified (GM) canola, which was due to ease in which non-GM canola meal could be used as feed meal in the dairy, chicken or pork industry.
Up until 2015/16, all Australian canola exported to Europe was non-GM.
Last year, about 100,000t of GM canola was shipped to EU countries.
However Mr Goddard said the price premium of $40-80/t of non-GM over GM canola could mean that was "sufficient incentive" for European crushers to purchase GM canola rather than pay the premium.
The spread between the GM and non-GM price also opened up opportunities for Canada, where GM canola makes up 95pc of canola grown in the country.
"For European crushers, it means they still make a saving even if they have to ship it to another country for $30/t," he said.
"It means there is also more of an opportunity for GM canola in Europe and is why Canada is also now interested in Europe as a market for their predominantly GM crop."
Other key markets for Australia's GM canola crop include Japan, China and Pakistan, however Mr Goddard said Australia's discreet segregation of GM and non-GM meant Australia could supply both markets, delivering "value back to the farm gate for growers".
WA is the main supplier of Australian canola to Europe, with 49pc of the 2015/16 season's 3.1mt Australian canola crop exported to EU countries.
