In Canada, the transportation sector accounts for approximately
24% of Greenhouse Gas ("GHG") emissions. On November 27,
2012 Canada's Environment Minister, the Honourable Peter Kent,
announced proposed regulations to improve fuel efficiency of
Canadian automobiles thereby reducing GHG emissions.
The proposed regulations, Regulations Amending the Passenger
Automobile and Light Truck Greenhouse Gas Emission Regulations,
establish progressively more stringent GHG emission standards for
passenger automobiles and light trucks over the 2017 to 2025 model
years. These proposed regulations are in addition to, and build
upon, the existing regulations which cover model years 2011 to
Minister Kent stated that the new regulations will "improve
fuel efficiency so that new cars will consume 50% less fuel and
emit 50% less GHGs than a similar 2008 model." These proposed
regulations are good news for the environment and for
Canadians' bottom lines. "At today's gas prices, a
Canadian driving a model year 2025 vehicle would pay, on average,
around $900 less per year compared to driving today's new
vehicles" Minister Kent added.
For model years 2017 to 2025, cars will be required to achieve
an average of 5% annual GHG emissions reductions. Light trucks will
be required to achieve an average of 3.5% annual GHG emission
reductions from model year 2017 to 2021 and 5% reductions from 2022
to 2025. This allows light trucks to still do the work that they
are required to do without sacrificing performance while companies
develop technological solutions for achieving the required GHG
The proposed regulations are also aligned with the US
regulations, maintaining the competitiveness of Canadian vehicle
manufacturers within the North American auto industry and another
step in the Government of Canada's sector-by-sector approach to
reducing GHG emissions.
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