April 2005
http://www.dieselnet.com/

Canada reaches GHG emission agreement with automakers

A voluntary agreement on greenhouse gas (GHG) emissions was signed between the Canadian government and the automobile industry. Under the Memorandum of Understanding (MOU), automobile manufacturers agreed to reduce total GHG emissions from new light-duty vehicles in Canada by 5.3 megatons by 2010, relative to a "business-as-usual" reference case projection of vehicle emissions in 2010. The MOU was signed by the Ministry of Natural Resources Canada, the Canadian Vehicle Manufacturers' Association, and the Association of International Automobile Manufacturers of Canada.

The GHG emission impact of the agreement relative to today's emission levels was not communicated by the government, with contradictory figures being quoted in the media. According to the MOU, the projected 2010 GHG emissions under the "business-as-usual" reference case are 90.51 Mt (CO2 equivalent). Thus, the reduction relative to the 2010 reference case is only 5.8%. Relative to today's emission levels, the MOU allows for an increase of the total GHG emissions, rather than reduction (due to the increased vehicle population). According to calculations by Canadian environmental groups--David Suzuki and Pembina Institute--the agreement allows emissions in 2010 to rise by 18% relative to 1990.

According to earlier reports by the Canadian media, a GHG emission reduction target of 25% (on an average vehicle basis) was discussed at the negotiation stage. But the automakers apparently feared that making a percentage commitment could undermine their lawsuit in the USA, which was launched to block the California's GHG emission standards.

Light-duty vehicles were responsible for 10% of Canada's GHG emissions in 2002. Under the Kyoto Protocol, Canada should reduce its emissions to 6% below the 1990 level during 2008-12. The Canadian automotive industry, most of which is located in Ontario, employs directly about 60,000 people and accounts for 12% of Canada's manufacturing gross domestic product.

        Memorandum of Understanding:
        http://www.nrcan-rncan.gc.ca/media/mous/2005/MOU20040405_e.pdf
        Natural Resources Canada press release:
        http://www.nrcan-rncan.gc.ca/media/newsreleases/2005/200522_e.htm
        http://www.nrcan-rncan.gc.ca/media/newsreleases/2005/200522a_e.htm
        David Suzuki press release:
http://www.davidsuzuki.org/Campaigns_and_Programs/Climate_Change/News _Releases/newsclimatechange04050502.asp

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