The federal government is looking into the potential for low-carbon fuels in Canada as it develops a new clean fuel standard that some say could do more to cut emissions than a carbon tax.

Natural Resources Canada has recently issued two new tenders, one looking for research on the ability of mining, oil and gas, forestry and other industries to switch to alternative fuels. The department is also looking for a study of liquid drop-in biofuels that could replace diesel, gasoline and jet fuel.