Fuel Economy Standards

Fuel economy standards in Canada have been set by Transport Canada under a voluntary Motor Vehicle Fuel Consumption Standards (MVFCS) Program which was inaugurated in 1978 by Transport Canada and Natural Resources Canada (then Energy, Mines and Resources Canada). The Program was designed to provide information on fuel consumption rates to prospective vehicle buyers, and to improve the fuel efficiency of new vehicle fleets. Under the Program, vehicle manufacturers are committed to meet a progressively stringent annual Company Average Fuel Consumption (CAFC) standard for new automobiles sold in Canada. The CAFC standards in Canada are similar to the US Corporate Average Fuel Economy (CAFE), except that the former standards are voluntary, while the latter are mandatory.

For information on fuel consumption for different classes of vehicle, model year and manufacturer, visit Natural Resources Canada’s website. Also, visit http://oee.nrcan.gc.ca for various fuel efficiency programs.

The Motor Vehicle Fuel Consumption Standards Act was passed in 1981 to enforce the CAFC’s standards as part of the government’s off-oil policy of the early 1980's. The Act was never proclaimed, as the Minister accepted the vehicle manufacturers’ voluntary commitment to meet and not exceed the required standards. The Act, however, remains as contingency legislation should future developments justify a mandatory program. This arrangement has resulted in good overall compliance with standards, while avoiding much of the administrative, compliance testing and reporting costs of a mandatory program. Approximately 98% of total vehicles sold in Canada meet these standards, while the remaining 2% of vehicles are built by limited-line manufacturers of luxury or high-performance vehicles.