Canada and Carmakers Close to CO₂ Agreement

5 February 2005

According to the CP, the Canadian federal government is within days of reaching a voluntary agreement with carmakers to produce vehicles that burn less fuel and emit fewer greenhouse emissions.

“We’re confident that we could arrive at a deal in the next few days,” [Transport Minister Jean] Lapierre told The Canadian Press after a meeting with presidents of the major auto manufacturers Friday. Asked whether the agreement would achieve the target set out in the Kyoto implementation plan—a 25 per cent improvement in the average fuel efficiency of new cars by 2010—Lapierre replied: “In that range—that’s what they’re working on.”

The 25 per cent target would cut 5.2 megatonnes from Canada's annual greenhouse emissions in 2010. A government source says the agreement will commit the manufacturers to cutting 5.2 megatonnes from annual new-car emissions by 2010, but will not enshrine the 25 per cent target.

The improvement will be achieved by introducing diesel, hybrid and other technologies, said the official, who spoke on condition of anonymity.

In other words, rather than committing to specific percentage reductions on a vehicle basis, it sounds like the automakers are proposing a reduction on a fleet basis, presuming the ability to change rapidly the mix of the fleet through the introduction of advanced technologies.

It seems to me better to have a hard target on a vehicle basis; fleet calculations offer a great deal of wiggle-room, as we in the US have seen with CAFE regulations. However, Lapierre and Environment Minister Dion have been vocal about their preference for the California model, so it will be interesting to see what emerges.

Assuming a deal is in the offing, it will undoubtedly affect the resolution of the lawsuit against California’s CO₂ regulation one way or the other. Such a deal, assuming it meets the goals of national policies, could rapidly ripple over to other countries already exploring taking a stance similar to  California’s.