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The State of Energy Efficiency in Canada, Office of Energy Efficiency Report 2006

Transportation

Market Trends

In 2003, the transportation sector accounted for approximately 28 percent of secondary energy use in Canada and about 34 percent of related greenhouse gas (GHG) emissions.

Energy efficiency improvements in freight and passenger transportation limited the growth in transportation energy use to 26 percent between 1990 and 2003. Without these improvements, transportation energy use would have increased by 41 percent over the period. Of interest, light and heavy trucks, with a combined increase of 404.2 petajoules, accounted for 84 percent of energy growth in the transportation sector over this period.

GHG emissions from the transportation sector increased by 25 percent from 1990 to 2003, consistent with the increase in energy use and the sector's reliance on fossil fuels.

The transportation sector consists of three sub-sectors: passenger, freight and off-road. The passenger sub-sector comprises three modes (road, rail and air), and the freight sub-sector comprises four modes (road, rail, air and marine). Road transport uses the most energy, accounting for more than 79 percent of total transportation energy use. Of this, over 59 percent is for passenger transportation and the remainder is for freight transportation.

Figure 16 illustrates an improvement in trucking energy intensity despite an increase in average activity over 1990 to 2003. Improved fleet practices, caused by an increase in transportation sector competitiveness and the introduction of electronic engines, have significantly improved engine fuel efficiency in medium- and heavy-duty trucks.

Promoting Energy Efficiency

Opportunities to improve the energy efficiency of road transport include manufacturing vehicles that are more fuel efficient; encouraging private and commercial owners to purchase such vehicles; and promoting fuel-efficient driving and maintenance practices. In addition, there are opportunities for passenger and freight users to employ more energy-efficient modes of transportation, such as route optimization, active transportation and modal shifts.

The Office of Energy Efficiency (OEE) works to improve the efficiency of fuel use in road transportation. Its approach is to

• improve the energy efficiency of vehicles offered to and purchased by consumers and fleet owners; and
  
  
• influence driver behaviour, vehicle maintenance practices and fleet management.

The OEE also promotes the development and use of alternative transportation fuels, seeking ways to reduce GHG emissions in the transportation sector through such energy sources as natural gas, ethanol, bio-diesel and fuel cells.

Selected Progress Indicators in Transportation

• The Motor Vehicle Fuel Efficiency Initiative aims at improving the fuel efficiency of new light-duty vehicles sold in Canada. The indicator used to measure annual progress is new vehicle fuel consumption, expressed in litres per 100 kilometres (L/100 km). Canada has a voluntary system of fuel consumption standards for each manufacturer, known as company average fuel consumption (CAFC). These standards - 8.6 L/100 km for passenger cars and 11.4 L/100 km for light trucks - are consistent with the regulatory standards in the United States. In 2004, passenger cars were, on average, 12 percent below the standards at 7.6 L/100 km, and light trucks were 6 percent below the standard at 10.7 L/100 km (see Figure 17).

• On April 5, 2005, the Government of Canada and the Canadian automotive industry signed a landmark agreement on climate change action. Under a memorandum of understanding, automobile manufacturers voluntarily agreed to reduce emissions from new vehicles sold in Canada, targeting an annual reduction in GHG emissions of 5.3 megatonnes from vehicle use by 2010.
  
  
• While vehicle fuel efficiency remained fairly flat between 1990 and 2003, new vehicles changed significantly due to technological advances. There was a marked increase in power in the average vehicle sold in Canada over this period and an increase in vehicle weight due, in part, to a market shift towards light trucks from passenger cars. While incremental improvements to vehicle fuel efficiency continued, they were partially offset by increases in vehicle power and size (see Figure 18). While the market share of new passenger cars and light trucks sold in Canada has stabilized at approximately 62 percent and 38 percent respectively, the trend of increasing average horsepower continues.

• For personal vehicles, transportation initiatives aim to improve the energy efficiency practices of private motorists by influencing car purchase decisions, on-road driving practices and vehicle maintenance practices through driver education and awareness initiatives. Figures 19 and 20 illustrate the awareness levels of Canadians with respect to transportation initiative activities.

• In fiscal year 2004-05, the "Auto$mart - A New Point of View" Driver Education initiative was launched (visit the Web site at vehicles.gc.ca). The Idle-Free initiative completed an idling campaign in the Greater Vancouver Regional District and initiated partnerships with the Clean Air Partnership, representing the Greater Toronto Area, and the Halifax Regional Municipality (visit the Web site at idling.gc.ca). The Be Tire Smart campaign, in partnership with the Rubber Association of Canada, launched a national Be Tire Smart Week and regional campaigns in British Columbia and Quebec (visit the Web site at betiresmart.ca).
  
  
• For fleet vehicles, the Transportation Program is aimed at improving the fuel efficiency and use of alternative fuels in commercially and publicly managed vehicle fleets. In fiscal year 2004-2005, the Commercial Transportation Energy Efficiency Rebate initiative provided over $2.8 million in incentives to certified idling-reduction technology purchasers. As well, the SmartDriver initiative trained more than 200 000 new and experienced commercial drivers. Over the same period, the annual truck-stop Idle-Free Quiet Zone campaign was conducted at more than 80 sites across Canada.

The OEE's Transportation Program

The vehicle efficiency component of the OEE's Transportation Program is intended to bring about a 25 percent improvement in the fuel efficiency of new light-duty vehicles sold in Canada by 2010. The initiative targets a significant voluntary improvement in new-vehicle fuel efficiency through The initiative targets a significant voluntary improvement in new-vehicle fuel efficiency through an agreement with the automobile industry, signed April 5, 2005, that targets an annual reduction in GHG emissions of 5.3 megatonnes by 2010. The initiative also involves consumer education activities and the evaluation of advanced vehicle technologies to facilitate their introduction and use in Canada.

For more information, visit the Web site at oee.nrcan.gc.ca/transportation/fuels/motorvehicles.cfm.

The Personal Vehicles initiative has developed campaign resources, information, tools and messaging in association with its partners to improve the public's fuel-efficient vehicle operation and maintenance practices. National campaigns and education initiatives were developed to increase motorists' awareness of the effect their vehicle-purchasing decisions and driving and maintenance practices have on their fuel use and costs as well as the environment. In addition, under a voluntary agreement, manufacturers affix an EnerGuide label to new cars, vans and light-duty trucks sold in Canada. The label indicates the vehicle's fuel consumption rating and estimated annual fuel costs, to help consumers select the most fuel-efficient vehicle that meets their everyday needs.

For more information, visit the Web site at vehicles.gc.ca.

The OEE's activities regarding fleet vehicles provide private-sector fleet managers with information, workshops, technical demonstrations and training programs on fuel-efficient practices for fleet vehicles.

For more information, visit the Web site at fleetsmart.nrcan.gc.ca.

The OEE's work in alternative transportation fuels promotes the development and use of alternative and future fuels in Canada. Information on conventional and alternative fuels is disseminated through reports, brochures and public events. Information on economic impacts, GHG emissions and general technical aspects are shared with the public and private sectors. The OEE forms partnerships with industry, research and other organizations in transportation, industry and energy. Such partnerships allow the OEE to follow and promote new developments in alternative transportation fuels, including further improvements in environmental and economic performance. Alternative transportation fuels include propane, natural gas, alcohols, electricity and hydrogen; conventional fuels include gasoline and diesel.

For more information, visit the Web site at oee.nrcan.gc.ca/vehiclefuels.

Measures for Alternative Transportation Fuels

• Ethanol Expansion Program (EEP) - Co-managed with Agriculture and Agri-Food Canada, the EEP aims at increasing the production and use of fuel ethanol in Canada by providing financial contributions for the construction or expansion of ethanol plants. Seventeen applications were received under the first round of the EEP, which closed in December 2003. An amount of $72 million was allocated in 2004 to six ethanol plant projects that represent a total annual production of 660 million litres of fuel ethanol per year (current fuel ethanol production is 200 million litres per year). Four of these plants were under construction in summer 2005. Round 2 of the program was launched in December 2004.
  
  
• Future Fuels Initiative - This initiative aims to increase the supply and use of fuel ethanol produced from biomass, such as plant fibre, corn, wheat and other grains. It includes three main activities: analytical work, public awareness and policy development. In 2004, a major biofuel study, including two national workshops, was conducted on the economic, financial and social analysis of ethanol and biodiesel and to assess public policy options. In March 2004, a national ethanol awareness survey was completed; results indicated that 85 percent of Canadians are in favour of increased ethanol-blended gasoline use in Canada (Ipsos-Reid).
  
  
• Canadian Transportation Fuel Cell Alliance (CTFCA) - This private-public partnership is co-managed by NRCan's OEE and CANMET Energy Technology Centre (CETC). The CTFCA encourages advancements in hydrogen and fuel cell technologies through demonstration projects.
  
  
• Biodiesel Initiative - This $11.9-million initiative is led by CETC and supported by the OEE. The initiative supports the Government of Canada's proposed target of 500 million litres of biodiesel production per year by 2010. A biofuels quality registry was established with the Alberta Research Council to set an industry protocol and standard for fuel analysis.