On May 30, 2018, Canada published final standards to reduce greenhouse gas (GHG) emissions from new on-road heavy-duty vehicles. The new regulation is part of Canada’s economy-wide commitment to reduce GHG emissions 30% by 2030 compared to a 2005 baseline. This new round of requirements applies to model year (MY) 2021 through 2027 trucks and buses and MY 2020 through 2027 commercial trailers. The preceding Phase 1 regulation, finalized in 2013, affected commercial vehicles MY 2014 through 2017. Environment and Climate Change Canada’s Phase 2 regulation closely aligns with the U.S. national standards.
Over the lifetime of MY 2020 to 2029 vehicles, ECCC estimates a total GHG emissions reduction of 73 million CO2-equivalent tonnes. The total value of the fuel savings, GHG reductions, and other environmental and economic benefits of the proposed regulation are estimated to be $23.8 billion CAD. The additional capital and operational costs associated with the development and deployment of efficiency technologies required to meet the standards is estimated to be $6.0 billion CAD. The nearly $18 billion CAD in net benefits exceeds the net benefits of the Phase 1 regulation by roughly a factor of 4.
*This publication was updated on November 10, 2018 to correct the status of the standards. The original paper can be found here.