Delay to Trailer Greenhouse-Gas Standards

Summary#

This Order approves an interim federal measure that keeps some vehicle and engine pollution rules out of force while Canada adjusts to recent U.S. regulatory changes. The interim measure, made on January 31, 2025, mainly delays greenhouse-gas rules for certain trailers and fixes two technical points so vehicle makers can keep reporting and claiming credits.

What it does#

• Approves the Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999, extending its effect for up to one year from when it was made.
• Suspends the greenhouse-gas standards for certain trailers in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations so those trailer standards do not come into force in Canada while the U.S. rules have changed.
• Updates the reference used to calculate emissions for plug-in hybrid electric cars in the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations, pointing companies to the correct U.S. regulatory citation.
• Revises the definition of “medium-duty passenger vehicle” in the On-Road Vehicle and Engine Emission Regulations to match a wider gross vehicle weight range used in the U.S., and lets companies use that new definition early if they choose.

Who's affected#

• Trailer manufacturers and trucking companies, especially smaller Canadian firms that build or sell trailers.
• Companies that manufacture or import new on-road heavy-duty vehicles, engines, and trailers for sale in Canada.
• Automakers and importers of light-duty vehicles (including plug-in hybrids and large battery-electric passenger vehicles) who report under the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations.
• Organizations that claim or track carbon-equivalent emission credits and that report under these vehicle regulations.
• If it is unclear who is affected in a specific case, those businesses should check which of their vehicles fall under the named regulations.

Why it matters#

• The delay reduces expected greenhouse-gas reductions by about 0.5 megatonnes (Mt) of CO2e for the lifetime of trailers from model year 2026, and by about 3.1 Mt CO2e over the 2020–2050 portion of operation for trailers from model years 2020 to 2026 combined.
• It aims to avoid putting Canadian trailer makers at a competitive disadvantage while U.S. rules change. Smaller Canadian firms would likely face higher relative compliance costs if Canada moved ahead alone.
• The technical fixes keep companies able to calculate emissions for plug-in hybrids and to claim credits for some vehicles, reducing extra paperwork or reporting under the heavier-duty rules.
• This is temporary: the interim measure can last up to one year and the department plans to propose amendments to the Canadian regulations to restore permanent alignment with U.S. rules.