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Transportation & Fuel Source Technology

Canada and United States Agree to Work Together to Improve Vehicle Fuel Efficiency

The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and United States Secretary of Transportation, Mary E Peters, today announced that the two countries have signed a Memorandum of Cooperation aimed at improving motor vehicle fuel efficiency. The Memorandum of Cooperation will help the Government of Canada in its efforts to develop motor vehicle fuel efficiency regulations.

"Regulating vehicle fuel efficiency is an important element of Canada's environmental agenda aimed at protecting the health of Canadians and the environment," said Minister Cannon. "Our government intends to work towards establishing an environmentally ambitious North American regulatory standard for cars and light trucks."

"Increasing fuel economy standards through sound science is the most effective way to reduce fuel consumption, preserve vehicle safety and support the development of the kind of technology needed to make our automobiles as efficient as possible," said Secretary Peters. "Today's announcement puts both our countries on a track to developing the kind of standards we need to secure our energy independence while protecting the economy, the environment and vehicle safety."

The Memorandum of Cooperation provides opportunities for the two governments to meet periodically to share respective strategies and regulatory practices governing motor vehicle fuel efficiency; exchange research, modeling and analysis related to fuel efficiency standards; and exchange information on motor vehicle fuel efficiency developments and initiatives within the two countries.

The Memorandum of Cooperation specifically refers to exchanging information on:
  • the assessment of technological changes to improve the fuel efficiency of vehicles;
  • potential options for fuel economy standards;
  • assessment of auto industry impacts of proposed standards;
  • developments related to potential credit trading systems; and
  • experiences relating to the use of economic instruments and sharing of work plans.
The Memorandum of Cooperation will allow the two countries to benefit from their knowledge and experience in the area of motor vehicle fuel efficiency.

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