Automakers Agreement to Reduce GHG Emissions

On April 5, 2005, the Government of Canada and the Canadian automotive industry signed a major agreement on climate change. Under this Memorandum of Understanding (MOU), the Canadian automotive industry will take actions to voluntarily reduce greenhouse gas (GHG) emissions of new vehicles in Canada so that by 2010, annual emissions reductions will reach 5.3 megatonnes (Mt).

Details of the MOU

This agreement calls on the automotive industry to cut GHG emissions from light-duty vehicles (cars, minivans, sport utility vehicles and pick-up trucks) so that by 2010, annual emissions reductions will reach 5.3 Mt. While carbon dioxide (CO₂) is the primary GHG produced from fossil fuel use in vehicles, this MOU recognizes that vehicles also produce several other greenhouse gases, such as methane, nitrous oxide and hydrofluorocarbons. This agreement targets all of these gases, which are smaller in quantity than CO₂ but are more potent in terms of climate change. This approach allows the industry to use the most appropriate and cost-effective means to reduce GHG emissions associated with vehicle use. To meet this reduction target, the automotive industry has committed to significantly reduce GHG emissions from vehicles through the introduction of advanced technologies.

While the MOU is in effect until 2010, the introduction of the enhanced technologies it would foster will lead to growing reductions in greenhouse gas emissions after 2010 as new vehicles replace older ones in the vehicle stock.

April 2005 News Release Memorandum of Understanding

Memorandum of Understanding

Joint Government/Industry Monitoring Committee

A key part of this agreement is the establishment of a joint government/industry committee (known as the Joint GHG MOU Committee) to track and report on progress to the target. The Committee consists of eight members in total, with four representatives each from government and industry and its work is primarily technical in nature. Information on the work of the committee, including progress updates and reports, will be available to the public as it is released.

As provided in the MOU, the Committee was formed in June 2005, within 60 days from signing the MOU. The Committee also tabled a Terms of Reference and Operational Plan in early October 2005, as stipulated in the MOU.

Communications and Deliverables

The Communications Plan includes key deliverables, including the release of updates and reports to ensure clear communication to the public on the progress of the MOU and the activities of the Joint GHG MOU Committee.

Key Deliverables

1. Committee Progress Updates – Three progress updates will be published in advance of the reports on interim goals provided for in the MOU, to provide information to the public on the work of the committee and progress being made.
   
   

   Joint GHG MOU Committee report	Period Ending
   First Committee progress update	1st quarter 2006
   Second Committee progress update	4th quarter 2006
   Third Committee progress update	2nd quarter 2007

   
   
   
2. Reports on emissions and interim goals for years 2007, 2008 and 2009 - These are key deliverables outlined in the MOU and will report on the progress towards meeting the three interim goals for emissions reductions in 2007, 2008 and 2009.
   
   

   Joint GHG MOU Committee report	Period Ending
   Report on 2007 emissions and interim goal	May 2008
   Report on 2008 emissions and interim goal	May 2009
   Report on 2009 emissions and interim goal	May 2010

   
   
   
3. Final Report for 2010 – This report will provide the final results on achievement of the 5.3 Mt target in 2010.
   
   

   Joint GHG MOU Committee report	Period Ending
   Report on 2010 emissions and target	May 2011