Abstract:

The required annual efficiency improvements for passenger vehicles in Canada are scheduled to weaken from 5% to 1.5% for model years 2021 to 2026. This is because Environment and Climate Change Canada’s (ECCC) greenhouse gas emission standards are linked to the newly-updated less-stringent U.S. rules. If Canada fails to act to keep the current standards and instead remains aligned with the United States, it will result in millions of dollars in lost savings for Canadian consumers and will hinder the country from achieving its climate goals.