Climate Change

In 2002, Canada ratified the Kyoto Protocol committing to reduce Green House Gases (GHGs) by 6% below 1990 levels by the first commitment period (2008-2012).

In April 2005 the Federal government announced its plan to achieve GHG reductions from broad sectors of the Canadian economy, including actions undertaken by governments, consumers, and across numerous industry sectors. As part of this plan the Canadian Vehicle Manufacturers’ Association (CVMA) and Association of International Automobile Manufacturers of Canada (AIAMC), representing all automakers in Canada have signed a formal voluntary agreement with the Government of Canada to reduce GHG emissions from Canada’s on-road vehicle fleet.

The Canadian Automotive Industry has voluntarily agreed to:

	Reduce GHG emissions from the Canadian on-road fleet of light duty vehicles by 5.3 Mt in 2010 compared to GHG emissions forecasted by the Government’s 1999 Transportation Table Study. The GHG reduction covers all GHGs recognized by the Kyoto Protocol that apply to the Canadian Auto Industry (e.g. CO2, N2O, CH4, & HFCs) equated to a CO2 equivalent using generally accepted global warming potential (GWP) weighting factors.
	Meet interim GHG reduction targets of 2.4, 3.0, and 3.9 Mt in 2007, 2008, and 2009 respectively.
	Continue efforts to develop and introduce advanced emission technologies including hybrid powertrains, cylinder deactivation technology, advanced diesel technology, alternative fuel compatible vehicles and other emerging technologies that are also being developed for the entire North American market on a coordinated basis. This will leverage the necessary economies of scale of the entire integrated North American new vehicle market to achieve commensurate GHG reductions.
	Continued introduction of Tier 2 level emissions control systems which reduce N2O emissions from new vehicles and, in conjunction with cleaner fuels, the N2O emissions of the entire fleet.
	Bring forward technologies that promote on-road fuel savings, such as on-board diagnostics and tire pressure-monitoring systems which improve vehicle maintenance and minimize the on-road deterioration of fuel consumption versus a vehicle’s original design capability.
	Help Canadians understand what they can do to reduce GHG emissions and support positive consumer and driver behaviour with respect to the purchase, maintenance, and operation of cars and light duty trucks across Canada.
	Encourage the expanded use of alternative fuels, such as ethanol, clean diesel, and bio diesel by working with the government and fuel providers in this regard.
	Ensure that vehicle design and engineering improvements do not undermine vehicle occupant safety.
	Work with the government to support Canadian-based research and development related to future technologies that have a long range potential to significantly reduce GHGs in the post Kyoto period. Examples of such technologies include hydrogen fuel cells, the development of a hydrogen infrastructure in Canada and other emerging technologies that are also major initiatives in the U.S.

Press release.

Backgrounder: The Automotive Industry in Canada.

Backgrounder: Auto Industry - Reducing Emissions.

Backgrounder: Reducing Emissions - Reference.

Memorandum of Understanding.

This voluntary GHG reduction agreement is part of the national plan developed for Canada. The GHG reduction approach superceded previous discussions focused on fuel efficiency that were not consistent with an integrated North American automobile industry.

The agreement recognizes that meaningful GHG reductions can be best accomplished by providing industry and individual companies with the flexibility they need to be able to make GHG improvements where they make the most economic and technical sense, that much more progress can be made by focusing efforts on the entire on-road national fleet rather than just on new vehicles which represent only 8% of the total fleet, and that such voluntary agreements are in the best interests of consumers, government, and industry.