Canadian Policy

In April 2010, Environment Canada released a draft greenhouse gas emissions regulation for 2011 to 2016 model year passenger automobiles and light trucks. This proposal attempts to align emission standards and test procedures with those of the United States. The proposal provides companies with similar compliance flexibilities to those available under the EPA's GHG proposal, including advanced technology credits, air conditioning leakage and efficiency credits, flexible-fuel vehicle credits through the 2015 model year, and credit transfer among fleets. A final rule is expected to be published in 2010.

The Provinces of Quebec and British Columbia are participants in the Western Climate Change Initiative and have committed to follow California's lead on vehicle CO₂ regulation. Quebec has adopted a GHG regulation based on the California standards, but California has agreed to defer to the U.S. federal program for the 2012 to 2016 model years. We are hopeful that, like California, the provinces will see the benefit of a single continental standard that includes the United States and Canada. Ford has participated in regulatory discussions on this issue, providing technical expertise and supporting a tough aligned standard.