Federal government kick starts review of Canada’s auto fuel-efficiency standards

Canada’s federal government is revisiting its auto fuel-efficiency standards for the years 2022-25.

Environment and Climate Change Minister Catherine McKenna released a discussion paper this week, kicking off the evaluation of Canada’s existing 2022-25 vehicle regulations, which were put in place in partnership with the U.S. during the previous administration under President Barack Obama in 2014. The commitment to a mid-term review was included in the 2014 regulations, and the review is not a result of the recent policy change proposed by the Trump administration to freeze U.S. fuel-efficiency regulations at 2020 levels.

Caroline Theriault, a spokesperson for the ministry, said Canada will look at both environmental and economic impact in that review and complete it before any decisions are made on how to proceed.

Canada has typically harmonized its vehicle-efficiency regulations with the United States because of the fully integrated nature of the North American vehicle market. The Canadian market of about two million vehicles sold annually is too small to develop unique standards, according to Mark Nantais, president of the Canadian Vehicle Manufacturers Association.

Standards that are harmonized between Canada and the United States are “deeply entrenched in our integrated market for vehicle sales and production,” Nantais said. Canada’s auto sector has consistently urged Canada’s federal government to align its regulation with those in the United States.