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News Release

Actions by Canada's New Government to Reduce Greenhouse Gases and Air Pollution

May 1, 2007

Canada's New Government is committed to delivering real reductions on greenhouse gas emissions and air pollution.

Diverse and complementary measures announced to date include:

  • The Regulatory Framework for Air Emissions, which imposes mandatory targets on industry and gives them access to a range of cost-effective options to meet the targets, including:
    • a capped technology fund to help the Canadian industrial sector develop new solutions critical to reducing greenhouse gases;
    • a domestic emissions trading system. We will also look at future linkages with emissions trading systems in the U.S., and possibly Mexico, with further international linkages to be explored over time;
    • domestic offset credits to engage other sectors of the Canadian economy to make greenhouse gas reductions, and;
    • access to the Clean Development Mechanism under the Kyoto Protocol to the United Nations Framework Convention on Climate Change.


  • Our Plan also:
    • addresses emissions from transportation by regulating for the first time the fuel efficiency of cars and light duty trucks, beginning with the 2011 model year,
    • strengthens energy efficiency standards for a number of energy-using products, including light bulbs, and
    • recognizes the urgent need to take action to improve indoor air quality and commits to implement measures to do so.


  • $1.5 billion to support to support environmental provincial and territorial projects, to reduce greenhouse gases and air pollution;

  • $2 billion to support renewable fuel production;

  • 5% renewable fuels content in gasoline by 2010 and2% renewable content in diesel fuel and heating oil by 2012 ;

  • $2 billion for ecoENERGY Initiatives to help Canadians use energy more efficiently, boost renewable energy supplies and develop cleaner energy technologies;

  • $1.3 billion for public transit;

  • $100 million for ecoTRANSPORT Strategy for new initiatives in clean transportation;

  • $36 million over the next two years for "scrappage" programs to retire older vehicles;

  • Rebate of up to $2,000 on fuel-efficient vehicles and levy of up to $4,000 on vehicles that are fuel-inefficient;

  • Tax credit for the purchase of monthly public transit passes;

  • The formation of the ecoENERGY Carbon Capture and Storage Task Force to recommend the best ways for Canada to implement on a large scale this promising technology to capture carbon dioxide and store it deep underground; and

  • $160 million over two years to offer performance-based rebates on new light duty vehicles.

Canada's New Government is also taking action to preserve Canada's natural heritage, strengthen the implementation of the Species at Risk Act, implement a new National Water Strategy and improve the enforcement of environmental protection laws.