On October 1, 2010, Environment Canada issued the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations. The regulations establish fleet-average greenhouse gas (GHG) emission standards applicable to companies that manufacture or import new passenger automobiles and light trucks for sale in Canada, beginning with the 2011 model year. For that year, as reported in Torys’ April 2010 Climate Change Bulletin, the regulations are designed to align with the existing U.S. national fuel efficiency standards.

Then for 2012 to 2016 model years, the regulations establish fleet-average standards that align with a new U.S. Environmental Protection Agency program. Moreover, the regulations include a system of emission credits to help meet overall environmental objectives in a manner that provides the automotive industry with compliance flexibility. Credits may be awarded for certain vehicle design improvements that reduce GHG emissions through approaches other than directly reducing tailpipe carbon dioxide emissions (such as technologies that reduce the impact of air conditioning refrigerant leakage). Looking beyond 2016, Environment Canada also released a Notice of Intent regarding the federal government’s commitment to continue working with the United States in developing tighter standards for light vehicles for the 2017 and later model years.

For further information, please see Canada announces regulations.