Automakers, Canada Strike CO₂ Deal

23 March 2005

The Globe and Mail reports that automakers have struck a voluntary deal with Candada to reduce greenhouse gas emissions from vehicles by 5.3 million metric tons by 2010.

Canadian Environment Minister Stéphane Dion had previously threatened to impose emissions limits on the sector if a voluntary deal couldn’t be reached.

Sources close to the talks say Ottawa will ink a memorandum of understanding with the heads of Canada’s two auto manufacturing associations in the next few days or weeks—a deal that will seal the car makers’ obligations under the Kyoto accord.

The reduction will come from:

• Developing and deploying fuel-efficient technologies.

• Reducing vehicle emissions and improving technology such as air conditioning.

• Producing more alternative fuel and gas-electric vehicles.

• Launching joint advertising and education with Ottawa to encourage Canadians to buy fuel-efficient vehicles.

The Canadian government originally was pushing for a 25% increase in fuel efficiency. The automakers balked,fearing, according to the paper, that making a percentage commitment could undermine the lawsuit undertaken against California’s CO₂ emissions standards. The 5.3 million tonne target reflects the emission reductions that would have resulted from a 25-per-cent increase in fuel efficiency by 2010.