Trailer GHG Standards Suspended for One Year

Summary#

The federal cabinet (the Governor in Council) approved an interim order that continues to suspend Canada’s trailer greenhouse‑gas (GHG) standards. The approval covers an order made by the Minister of the Environment on March 13, 2023 and was approved on March 27, 2023; it keeps the trailer rules on hold for up to one year while Canada stays aligned with the United States.

What it does#

• Approves the Interim Order Modifying the Operation of the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards) that was made on March 13, 2023.
• Extends the suspension of the trailer rules in the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations for up to one year from the date the interim order was made.
• Keeps in place the status quo that trailers whose manufacture was completed on or after January 1, 2020 do not have to meet the trailer GHG standards while the suspension is in effect.
• Notes the suspension could end sooner if the regulations are amended or repealed before the one‑year period ends.
• Estimates the delay will reduce expected GHG savings by 0.4 megatonnes (Mt) CO2e for model year 2024 trailers, and by about 2 Mt CO2e for model years 2020 to 2024 combined.

Who's affected#

• Trailer manufacturers and importers — especially smaller Canadian firms in Quebec, Ontario and the Prairies that build box vans, refrigerated trailers and other haulage trailers.
• Trucking companies and other businesses that buy and operate trailers.
• Vehicle manufacturers and importers that sell heavy‑duty vehicles and trailers in Canada.
• The federal department doing this work, Environment and Climate Change Canada, and the Minister who issued the interim order.

If it’s unclear who is affected: the notice applies to companies that manufacture or import new on‑road heavy‑duty trailers for sale in Canada.

Why it matters#

• Economic fairness: Canadian trailer makers said introducing the trailer rules while the U.S. was not enforcing equivalent rules would put smaller Canadian firms at a competitive disadvantage versus large U.S. manufacturers. This order keeps Canada aligned with U.S. timing to avoid that risk.
• Environmental trade‑off: delaying the rules means less near‑term GHG reduction (0.4 Mt CO2e for 2024; ~2 Mt CO2e for 2020–2024 combined) and delays fuel‑saving benefits that would come from more efficient trailer designs.
• Policy uncertainty continues: the government will monitor U.S. developments and consult with industry over the next year before deciding whether to bring the trailer standards into force.