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Canadian Auto Emission Deal Reached 04 April 05

TrafficOn March 23, 2005, automobile manufacturers reached an historic agreement with the Canadian government to reduce greenhouse gas emissions by 5.3 million tonnes by 2010.

These vehicles will achieve about a 25% increase in fuel efficiency. Improvements will be made by using more efficient engines, smarter transmissions, and better aerodynamics - to make vehicles go farther on a gallon/liter of gas.

The agreement is similar to the Pavley Clean Car Law adopted by California and seven other states. This deal has implications for the entire North American car market. With the addition of Canada, one-third of the North American auto market will have to meet California equivalent emissions rules. The automakers will find it financially impossible to make one more fuel efficient set of cars for eight states and Canada, and a less fuel efficient set for the rest of their markets.

To ensure the auto companies comply, the Canadian government is changing its environmental protection laws to create a regulatory backstop. Canada will legally enforce the pact if the automakers fail to live up to their promises.

Cutting car emissions is one way Canada hopes to meet its targets under the Kyoto Protocol, which obliges Canada to cut output of greenhouse gases by 6 percent from 1990 levels by 2012. But overall Canadian emissions are, in fact, about 20 percent above 1990 levels and senior government officials candidly admit Canada has no chance of meeting its Kyoto goals by domestic reductions alone.

View the New York Times March 24, 2005 article
View the Sierra Club US March 23, 2005 press release
View the Reuters February 28, 2005 article on the Environmental News Network
View the February 16, 2005 Manitoba Wildlands Emissions news item
Visit our new Canada & Kyoto section
View April 5, 2005 MOU between Canada and the Canadian Automotive Industry (PDF)

Sources: Reuters, Sierra Club US, New York Times


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