Speech

 Thank you, Mr. (Christopher) Grundler, and good morning.

Let me begin by thanking Secretary Chu and Deputy Administrator Perciasepe for the United States Government hosting this event. I would also like to take this opportunity to thank the dedicated officials at the United States Environmental Protection Agency for their significant efforts in leading the organization of this important event.

Environment Canada was proud to be a member of the Steering Committee — a process that underscored how governments, industry and other stakeholders can work together effectively to advance the cause of environmentally friendly vehicles.

For my part this morning, I want to outline what Canada is doing to improve the environmental performance of on-road vehicles — from the perspective of both government and industry.

The Government of Canada is committed to continued improvement in the environmental performance of vehicles. To that end, we’re developing stringent regulations to reduce greenhouse gas emissions from on-road transportation, for both light and heavy-duty vehicles. This is part of a sector‑by‑sector approach to meet Canada’s environmental objectives.

And we’re clearly having an impact. A recent report released by Environment Canada [Emissions Trends Report] estimates that as a result of new and future greenhouse gas emission regulations, the average fuel consumption of new passenger cars  will ultimately be reduced by some 35 percent compared to 2010. Meanwhile, as a result of implementing our proposed regulations, it is anticipated that greenhouse gas emissions from heavy-duty vehicles of the 2018 model year will be reduced by up to 23 percent.

Alongside these new regulations and standards, Canada is pursuing complementary measures to improve the environmental performance of vehicles. For example, the government provides consumers with tools to help them choose fuel-efficient vehicles and adopt driving practices that save fuel. And, through our ecoTECHNOLOGY for Vehicles Program, we are testing the safety and environmental performance of advanced vehicle technologies.

While we’re proud of our progress, I don’t want to suggest the Government of Canada is going it alone. Indeed, given the highly integrated nature of the automotive industry in North America, Canada has worked closely with the United States to take a harmonized approach to reducing on-road emissions. By aligning our mandatory standards, both our countries can enjoy significant environmental and economic benefits. This approach is consistent with the objectives of the Canada-United States Regulatory Cooperation Council, which was established to increase regulatory cooperation and alignment between our two countries across a wide range of sectors.   

Bilateral cooperation, of course, is nothing new. Canada and the United States have worked together long and hard under the United States-Canada Air Quality Agreement to reduce trans-boundary air pollution that leads to smog and acid rain. Under this agreement, we have harmonized our air pollutant regulations for motor vehicles and coordinated our efforts on regulatory administration and emission testing. Indeed, it’s fair to say that transportation and fuel regulations have already reduced ambient levels of carbon monoxide, nitrogen oxide and sulphur dioxide in Canada.

But even national governments working together can only go so far. With respect to reducing transportation emissions, the rubber only hits the road when industry gets on board. What a delight, then, to report that industry — in all its facets — is rising to the challenge.

Driven by the new standards, as well as demands from consumers, the vehicle and engine industry is developing increasingly sophisticated options to improve environmental performance in its vehicles. In addition to vastly improved gasoline and diesel-powered vehicles, for example, consumers can now access a wide range of hybrid-electric, plug-in hybrid and fully-electric models.

The pace of change moves faster than a pit stop, but Canada’s automotive manufacturing industry is keeping up. Last year, for example, Toyota and Tesla Motors announced they would build their jointly developed RAV4 electric vehicle at the Toyota Motor Manufacturing Canada’s plant in Woodstock, Ontario. Also, this past July, General Motors of Canada outlined its commitment to invest $850 million in research and development activities in Canada, which will include investments in state-of-the-art technology research at the company’s Canadian Engineering Centre in Oshawa, Ontario. Finally, I want to recognize the important contribution of the fuel industry in bringing cleaner fuels to the marketplace to improve environmental performance.

So what’s next?

Well, the Government of Canada is currently developing more stringent regulated standards for greenhouse gas emissions for light-duty vehicles for the model years 2017 to 2025, which will align with those recently announced by the United States Environmental Protection Agency.

As a result of these regulations, we expect plug-in hybrid and fully electric vehicles will increase their market share in Canada. That’s good news for us since we have one of the world’s cleanest electricity systems. In fact, three‑quarters of our electricity supply emit no greenhouse gases whatsoever.

Still, we can do even better. We’ve been working towards developing tough greenhouse gas emission reduction regulations for new coal-fired electricity units, as well as for those reaching the end of their economic lives. In addition to commitments made by provinces and industry, these regulations are projected to reduce greenhouse gas emissions from the electricity generating sector to 41 megatonnes below 2005 levels by 2020.

This is encouraging on several counts. Apart from the obvious environmental benefits, a cleaner grid will help us promote electrification in the transportation sector.

In the years ahead, we also need to work increasingly on a global level to improve the environmental performance of vehicles. To that end, Canada is a signatory to the 1998 Agreement, administered under the United Nations Economic Commission for Europe.

The Commission’s World Forum for the Harmonization of Vehicle Regulations plays a critical role in developing global standards. I’m proud that Environment Canada is actively working with the United States and our other international partners in developing and implementing the Commission’s agenda. Global standards not only make sense from an environmental standpoint, they can also contribute to reducing trade barriers in an increasingly globalized industry.

Needless to say, I’m very much looking forward to Mr. Alkalaj’s inaugural address in a few moments.

I’ve made the case this morning that Canada has made significant progress in reducing the environmental impacts of vehicles. Over the past few years, the Government of Canada and consumers have challenged industry to do better. And industry has delivered.

Now, together with our southern neighbours and the international community, we have to keep driving towards even greater improvements — whether it’s through more innovative technologies for vehicles and fuel, or through readying consumers and the marketplace for advanced technology vehicles.

Greener global transport is a road that stretches beyond the horizon, and we can never afford to think we’ve reached the finish line.

In reviewing the program for the conference, I have no doubt that it will stimulate an important dialogue on a wide range of issues that will help promote environmentally friendly vehicles. On behalf of the Government of Canada, I welcome you to the conference and wish you all the best for very productive deliberations.

Thank you.