As part of its commitment to reduce greenhouse gas (GHG) emissions under the Kyoto protocol, the Government of Canada developed Action Plan 2000 on Climate Change. The transportation component of Action Plan 2000 is substantial. It responds to the fact that, while fuel efficiency is improving, it is not keeping pace with annual increases in the use of transportation. 

The freight transportation component of the Action Plan, although just one of five transportation measures, represents a variety of measures designed to reduce the growth of GHG emitted by the freight transportation sector. Delivered through the Freight Efficiency and Technology Initiative (FETI), it is sub-divided into three components; the Freight Sustainability Demonstration Program; Voluntary Performance Agreements; and Training and Awareness.

In addition to Action Plan 2000, the Government of Canada, in November 2002, released the Climate Change Plan for Canada. The Climate Change Plan sets out a three-step approach for achieving Canada’s climate change objective of reducing annual GHG emissions by 240 megatonnes (MT). First, there are the investments to date that will address one third of the total reduction (80 MT). Second, it articulates a strategy for a further 100 MT reduction. And finally, it outlines a number of current and potential actions that should enable Canada to address the remaining 60 MT reduction. 

With regards to freight transportation, the Climate Change Plan for Canada called for the creation of the Commercial Transportation Energy Efficiency and Fuels Initiative. It consists of both the Freight Efficiency Program, which will be administered by Transport Canada, and the Commercial Road Transportation Program, which will be administered by the Office of Energy Efficiency at Natural Resources Canada. The new Freight Efficiency Program will provide financial incentives for the purchase and installation of energy efficiency enhancing equipment in the air, marine and rail modes; and education and awareness to support improved decision-making by shippers.