Canada's Fuel Consumption Standards Act Becomes Law

December 11, 2007 // Published as a news service by IHS

These standards will come into force following the expiration of the memorandum of understanding (MOU) between the auto industry and the Canadian government in 2010, and will be implemented for model year 2011.

"Regulating the fuel efficiency of new motor vehicles is an important element of the government's legal framework for reducing greenhouse gas [GHG] emissions," said Lawrence Cannon, Canada's minister of transport, infrastructure and communities.

"Proclaiming the act is an important step toward achieving one mandatory national standard," he said.

"Setting mandatory fuel consumption standards will lead to sustained improvements in fuel efficiency and help to reduce greenhouse gas emissions from vehicles purchased in Canada," said Gary Lunn, Canada's minister of natural resources.

In 2005, Canada and the Canadian automotive industry signed a MOU stipulating that the Canadian automotive industry would take actions to voluntarily reduce GHG emissions of new vehicles in Canada.

The agreement called on the automobile industry to cut GHG emissions from light-duty vehicles (cars, minivans, sport utility vehicles and pickup trucks) so that by 2010, annual emissions reductions will reach 5.3 megatons (MT).

Experts said MVFCSA standards will be developed with input from stakeholders. They will be designed to maximize Canada's environmental and economic benefits, will be achievable within the integrated North American market and will be benchmarked against a stringent, dominant North American standard. The new standards will be published by the end of 2008.

For more information on Canada's ecoTRANSPORT initiatives, go to www.ecoaction.gc.ca.

Source: Transport Canada (TC).