How can fuel efficiency be improved? What are industry and government doing to address the issue? And what can you do to help?

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What is Being Done by Government

In Canada, the average fuel efficiency levels of new automobile fleets are relatively unchanged from two decades ago. Take a look at what is currently being done by governments in Canada to change this:

Federal Initiatives

Memorandum of Understanding

A 2005 agreement between the Government of Canada and the Canadian Auto Industry calls for the automobile industry to voluntarily cut annual GHG emissions of light-duty vehicles by 5.3 megatonnes by 2010.

Regulatory Framework on Air Emissions

In April 2007, the government announced a major plan to reduce GHG emissions in Canada, which included setting new vehicle fuel consumption standards at a level that “maximizes the environmental and economic benefit.” Later that year, the Government of Canada proclaimed the Motor Vehicle Fuel Consumption Standards Act into law, regulating fuel consumption levels for the first time ever, with the goal of reducing GHG emissions. In April 2009 the federal government announced that new vehicles would be subject to CO2 regulations equivalent to the mpg standards set by CAFE.

Green Levy

Since 2007, the automobile industry has been paying a levy on vehicles (excluding pick‐up trucks and vans designed to carry ten or more passengers) with a fuel consumption rating of 13 or more litres per 100 km. The levy is incorporated into the final sticker price of the vehicle. The Green Levy was part of a Budget 2007 initiative called the Vehicle Efficiency Incentive, which included the ecoAUTO program. This program paid rebates of up to $2,000 dollars to buyers of the most fuel efficient vehicles. The incentive program was terminated in March 2009.

Fuel Consumption Guide

Natural Resources Canada publishes a Fuel Consumption Guide each year which lists fuel consumption ratings for a variety of vehicles sold in Canada.

EnerGuide Fuel Consumption Labels

EnerGuide Fuel Consumption Labels allow consumers to compare the fuel consumption and estimated annual fuel costs prior to purchase. While it is expected that every new passenger car, van and light‐duty truck carry the label, it is not required by law.

Auto$mart

Natural Resources Canada’s Auto$mart program offers a wide variety of teaching tools, on‐line resources and tips for motorists.

ecoTECHNOLOGY for Vehicles Program

This programs explores how advanced technologies can help reduce vehicle greenhouse gas emissions, air pollutants and fuel consumption. In‐depth testing of environmental performance and safety conducted and published. Technologies are then showcased at public events across Canada.

Provincial Initiatives

British Columbia (Vancouver and Fraser Valley Region) and Ontario have both implemented vehicle inspection and maintenance programs. Under these programs older polluting vehicles are identified with the goal of having them repaired or taken off the road. Many provinces provide partial rebates on the Provincial Sales Tax paid on hybrid‐electric or otherwise fuel efficient vehicles; this includes Ontario, Prince Edward Island, British Columbia, Quebec and Manitoba. In Ontario, there is also a Tax for Fuel Consumption whereby fuel inefficient vehicles may be subject to a tax of $75 to $7,000.