Biodiesel has potential to reduce greenhouse gas emissions, particularly in the trucking industry. Ontario has already exempted biodiesel from the 14.3 cents per litre provincial tax and the federal government has exempted biodiesel from the 4.0 cents per litre federal excise tax. To further encourage the development of biodiesel, this Plan proposes that federal, provincial and territorial governments collaborate on how to reach a target of 500 million litres of biodiesel production by 2010 using a variety of tools including incentives, standards, and research and development.