Ontario’s transition to a low carbon economy – Auto industry is part of the solution

February 25, 2016 PRESS RELEASE

Ontario’s introduction of New Climate Change Legislation enables the establishment of a cap and trade program and is a step toward a lower carbon economy which takes a broad-based approach to reducing greenhouse gas emissions (GHG) from all sectors. Automakers have participated in consultations with government officials since the outset and are part of the solution to this important issue.

Ensuring the long term competitiveness of Ontario’s auto industry and its supply chain relative to completing plants in other jurisdictions is critical. Mark Nantais, President of the Canadian Vehicle Manufacturers’ Association (CVMA), said: “The auto industry is a high risk for carbon leakage and highly trade exposed as it exports almost 99% of what it builds. To that end, Ontario has recognized that transitional allowances for the first compliance period and beyond are needed, as is the reinvestment of cap and trade program revenues into energy efficiency projects to further reduce greenhouse gas emissions and offset additional costs incurred.” CVMA is committed to working with the Ontario government on the development of an appropriate regulatory framework suitable for the globally competitive environment in which we operate.

Auto manufacturing contributes less than 1% of total greenhouse gas emissions in the province which has been achieved through many successive years of energy efficiency improvements across all facilities in Ontario. New light duty vehicles are already regulated for vehicle greenhouse gas emission reductions at the federal level on a harmonized basis in Canada and the United States. Under these very stringent greenhouse gas emission regulations for model years 2017-2025, fleet fuel consumption will be reduced by 50% in the final year compared to a 2010 model year vehicle. Compliance will be achieved by vehicle manufacturers using a multi-technology and fuels pathway, which includes a growing number of electric vehicles.
For more information, please contact:

Mark Nantais
Canadian Vehicle Manufacturers’ Association

About the Canadian Vehicle Manufacturers’ Association (CVMA)
The Canadian Vehicle Manufacturers’ Association is the industry association that has represented Canada’s leading manufacturers of light and heavy duty motor vehicles for more than 85 years. Its membership includes Chrysler Canada Inc.; Ford Motor Company of Canada, Limited; General Motors of Canada Limited; and Navistar Canada, Inc. Collectively its members account for 65% of vehicles produced in Canada, operate 5 vehicle assembly plants as well as engine and components plants, and have over 1,300 dealerships. 125,000 jobs are directly tied to vehicle assembly in Canada. Direct and indirect jobs associated with vehicle manufacturing are estimated at over 500,000 across Canada. Please visit www.cvma.ca.