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New regs proposed for Canadian auto industry

GHG and fuel efficiency rules to take effect with 2017 models


OTTAWA—The federal government has proposed new regulations to improve fuel efficiency and reduce greenhouse gas (GHG) emissions of passenger automobiles and light trucks for model years 2017 to 2025.

“These new regulations improve fuel efficiency so that by 2025 new cars will consume 50% less fuel and emit 50% less GHGs than a similar 2008 model, leading to significant savings at the pump,” said environment minister Peter Kent. “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.”

The proposed regulations would establish progressively more stringent GHG emission standards for passenger automobiles and light trucks over the 2017 to 2025 model years and would build on regulations already in place for model years 2011 to 2016. It is expected that these regulations will reduce GHG’s by 162 megatonnes between 2017 and 2025.

The proposed regulations are aligned with stringent United States regulations. This approach provides significant environmental and economic benefits and preserves the competitiveness of Canadian vehicle manufacturers within the highly integrated North American auto industry.

While the regulations are aligned, Canada has made some unique contributions. For example, our country included greater regulatory incentives for advanced technology vehicles such as electric vehicles and plug-in hybrids for model years 2011 to 2016, and both countries are now following suit for model years 2017 to 2021.

These proposed regulations are the latest step in the government’s sector-by-sector approach to reducing GHGs. They are also an important part of the Government of Canada’s overall climate change strategy, which aims to reduce GHG emissions by 17% from 2005 levels by 2020.