As Canada aligns itself with California on emissions standards, it may be easy to forget that a single North American standard is what we need — and what will deliver the most benefits.
As we head into the fall election, recent polls suggest that the environment is one of the top issues after healthcare and cost of living for Canadian voters.
This is the first time that the environment occupies such a central spot in the public debate, and it’s because climate change has become a constant reality. There is also a growing understanding that governments need to take immediate action and implement policies to mitigate the impacts of global warming, which has historically been linked to high levels of greenhouse gases (GHGs) in the atmosphere.
Transportation accounts for a sizeable portion of GHG emissions, and regulations around these emissions are essential to counter the effects of climate change. Governments around the world have introduced regulations and tougher standards to reduce emissions. Climate change is a global issue and it requires strong cooperation between countries to achieve the emissions reduction goals and the best environmental outcomes for the planet.
Canada and the United States have done the right thing by harmonizing their emission standards over the past two decades. Canada adopts the Environmental Protection Agency (EPA) standards by default. The single standard requires vehicles to become more fuel-efficient every year between 2017 and 2025.
Since they tied the knot, both countries have had an amazing run. Environment Canada has even reported over compliance from manufacturers. However, the recent agreement signed by Canada and the state of California last month sends a clear signal that the single continental standard is threatened. It shows that Canada is preparing to align with California should the Trump administration roll back on the Obama-era emission standards.
The agreement is quite frankly premature and politically motivated. Canada should have waited and encouraged the U.S. and California to come to an agreement to maintain a single standard. The fragmentation in the emission standards will distort the automobile market in North-America, limit availability, and increase vehicle prices for consumers in Canada. It would also open the door and set a precedent for challenges from the provinces as it is the case with the carbon tax. A different standard in Quebec, B.C., or Alberta will make it nearly impossible for manufacturers to meet the requirements in each jurisdiction. The divergence between the two countries would create different markets, put the economy at risk, and achieve nothing for the environment.
The harmonization of our regulatory framework with our southern neighbour is not just preferable, it is the only way forward. We just spent two years negotiating a trade deal designed to further integrate our economies. A move from the continental standard will disrupt the whole North-American automotive supply chain.
The harmonization of our regulatory framework with our southern neighbour is not just preferable, it is the only way forward.
The automobile industry has also been committed to drastically improve fuel efficiency for new vehicles, and to mitigate the environmental and carbon footprint for quite some time.
When emission standards became more stringent and consumer demand for greener vehicles increased significantly, manufacturers developed and deployed a variety of advanced technologies to reduce their CO2 emissions. New vehicles rolling off dealer lots today are far more fuel-efficient and cleaner than the older ones.
Our industry needs certainty and clarity in regulation to thrive. And a clear and homogeneous set of rules across the board is essential to ensure compliance, reduce emissions, and ultimately achieve Canada’s climate change goals.
While it is still unclear whether the Canadian government will adopt its own standard, aligned with California, one thing is certain: a single continental emission standard harmonized with the U.S will reap the most economic and environmental benefits for Canada.
Predictability and harmonization of emission regulations are essential to tackle a borderless issue, and it requires cooperation between countries. Canada should ensure an agreement acceptable to both countries is reached, and the single continental standard is maintained.
