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Memorandum of Understanding |
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| › Memorandum of Understanding |
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| Background |
As part of Canada’s commitment under the Kyoto Protocol to limit climate change, the Government of Canada and the automobile industry signed the Memorandum of Understanding (MOU) on 5 April, 2005.
The Canadian Vehicle Manufacturers' Association (CVMA)* and the Association of International Automobile Manufacturers of Canada (AIAMC)* voluntarily agreed to reduce annual greenhouse gas emissions from new light-duty vehicles by 5.3 million tonnes of CO2 equivalent in 2010. The reference case of 90.51 million tonnes is based on the 2010 forecast in the 1999 Transportation Table Report on Climate Change.
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| Impact on MAC |
The agreement provides flexibility for the industry on how to reach the target. It promotes all innovations in vehicle technology, operation and maintenance that will contribute to fuel efficiency. This leaves space for emission reductions resulting from Mobile Air Conditioning systems working with less potent greenhouse gases (GHG) than hydrofluorocarbons (HFCs).
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| Targets |
In order to track progress towards the 2010 objective, the Parties agreed on the following interim goals for new vehicles:
By 2007: a GHG emission reduction of 2.4 million tonnes of CO2 equivalent
By 2008: a GHG emission reduction of 3.0 million tonnes of CO2 equivalent
By 2009: a GHG emission reduction of 3.9 million tonnes of CO2 equivalent
A joint government-industry committee will monitor the industry performance against these interim goals. The committee’s annual reports with GHG data will be available to the public.
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| Official documents |
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| Latest & Next steps |
By fostering enhanced technologies in the automobile sector, the MOU seeks to ensure further reductions in GHG emissions after the target year 2010.
Once passed, Canada’s Clean Air Act, introduced in October 2006, will replace the voluntary commitment under the MOU with fixed fuel consumption limits, regulations and timelines regarding energy-efficiency within the next three years.
In February 2007, the government announced a mandatory cap on GHG emissions. In addition, a new "ecoEnergy for Personal Vehicles" programme will support consumers in choosing fuel-efficient cars, and will help carmakers to comply with the voluntary MOU targets. First proposals are expected within 2007.
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| More information: |
 MOU- Interim Goals and 2010 Target (17 KB)
* Automotive companies that signed the agreement: BMW, DaimlerChrysler, Ford, General Motors, Honda, Hyundai, Jaguar, Kia, Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Subaru, Suzuki, Toyota, Volkswagen, Volvo.
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