Delay to Trailer GHG Standards

Summary#

The Governor in Council approved the Interim Order Modifying the Operation of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards) that the Minister of the Environment made on May 18, 2020. The approval (dated May 27, 2020) lets Canada delay the trailer greenhouse‑gas rules for up to one year so officials can do more analysis and consult with industry.

What it does#

• Approves the second temporary suspension of the trailer parts of the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations.
• Delays the application of the trailer standards that otherwise apply to trailers whose manufacture was completed on or after January 1, 2020.
• Keeps the rest of the vehicle and engine standards in the regulations in effect.
• Gives the federal department more time to study economic impacts and to consult on whether Canada should keep, change or repeal the trailer standards.
• Notes the delay could cut the Regulations’ estimated GHG reductions by up to 0.8 Mt of CO2e for trailers of model years 2020 and 2021 combined (out of an estimated 73 Mt CO2e benefit from the 2020–2029 package).
• The suspension can end earlier than one year if the Regulations are amended or the interim order is repealed.

Who's affected#

• Trailer manufacturers and assemblers in Canada, including many small businesses (many have fewer than 100 employees).
• Trucking companies and fleet operators that buy or use new trailers.
• Businesses that import new on‑road heavy‑duty vehicles, engines or trailers for sale in Canada.
• The decision is meant to respond to regulatory uncertainty in the United States (where the U.S. EPA’s trailer rules have been stayed), so cross‑border manufacturers and suppliers may also notice effects.

Why it matters#

• It buys time for federal officials to study costs and consult with the trailer and trucking industries before making a final decision.
• In the short term, Canadian trailer makers avoid immediate compliance and investment costs.
• In the short term, fleets and the public also miss the fuel‑saving benefits and the small portion of emissions reductions the trailer rules would have delivered (0.8 Mt CO2e for 2020–2021 trailers).
• The delay could affect competitiveness between smaller Canadian manufacturers and larger U.S. producers while U.S. rules remain uncertain.