Canada has recently announced final regulations that would impose progressively more stringent greenhouse gas (GHG) standards for new passenger automobiles and light trucks for the 2011-2016 model years. The regulations establish (i) fleet average emissions standards aligned with the U.S. national fuel economy program; (ii) an emissions credit trading program; (iii) mandatory annual reporting of fleet average emission performance; and (iv) special provisions that recognize non-conventional technologies to reduce GHG emissions, such as reducing air conditioning refrigerant leakage or improving the efficiency of air conditioning systems, and incentives for advanced technology vehicles.

According to published reports, the new standards are expected to generate a cumulative reduction of 92 metric tons of carbon dioxide equivalent and cumulative net benefit of $9 billion over the lifetime of the vehicles produced in the 2011-2016 model years. See BNA Daily Environment Report, October 5, 2010.