Fuel Efficiency

The government’s voluntary fuel consumption program for new vehicles was initiated in the late 1970s, as an alternative to proclamation of mandatory standards under the Motor Vehicle Fuel Consumption Standards Act (1982). Motor vehicle manufacturers agreed to meet voluntary annual company average fuel consumption (CAFC) targets for new automobiles sold in Canada that match the mandatory standards in the U.S. The Program is administered by Transport Canada in partnership with NRCan.

On October 6, 2000, the Honourable David Anderson, Minister of the Environment, and the Honourable Ralph Goodale, Minister of Natural Resources, announced the Government of Canada’s contribution to the first national business plan on climate change. Action Plan 2000 on Climate Change is a comprehensive package of measures that includes a commitment to spend up to $500 million over the next five years on new ways to reduce greenhouse gas emissions.

As part of the federal Action Plan 2000 on Climate Change, the Government of Canada announced in October 2000 a new voluntary Motor Vehicle Fuel Efficiency Initiative (MVFEI). The goal of this initiative was to achieve a voluntary agreement for a significant improvement in light-duty vehicle fuel efficiency for model year 2010

Transport Canada manages the Advanced Technology Vehicles Program (ATVP) as part of this initiative. Under this program, available or soon to be available advanced vehicles and technologies are being evaluated to determine their impact on safety, energy efficiency and the environment. The sustainability of Canada's transportation system relies on the reduction of air emissions from transportation sources and the development of cleaner transportation systems, practices and technologies. Vehicles with advanced powertrains, materials, chassis designs, emission controls, fuels, and other technologies are poised for introduction over the next decade. The ATVP will ensure that Transport Canada is ready to match the pace of technological change with programs that facilitate the introduction and use of clean, safe and efficient advanced technology vehicles.

In the Climate Change Plan for Canada, released on November 21, 2002, the Government of Canada renewed its commitment to working with automotive manufacturers to develop a new fleet efficiency goal. The government’s objective is to improve light-duty vehicle fuel efficiency by 25 percent in new vehicle fleet fuel efficiency by 2010. To assist consumers in making the best environmental choices, the government will enhance public information programs.