Trailer GHG Standards Suspended, Vehicle Rules Updated

Summary#

This is an Order approving an interim order made by the Minister of the Environment on November 24, 2025. The approval (by Governor in Council on December 5, 2025) temporarily suspends Canada’s trailer greenhouse gas rules and updates two vehicle-related regulatory references and definitions to stay aligned with recent U.S. changes, for up to one year from November 24, 2025.

What it does#

• Approves the Interim Order Modifying the Operation of Certain Regulations Made Under the Canadian Environmental Protection Act, 1999, extending it for up to one year from November 24, 2025.
• Suspends the trailer greenhouse gas (GHG) standards in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations so those trailer rules do not take effect in Canada while the interim order is in force.
• Updates the plug‑in hybrid calculation reference in the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations so companies can continue to calculate emissions using the correct U.S. regulatory section.
• Revises the definition of “medium‑duty passenger vehicle” in the On-Road Vehicle and Engine Emission Regulations so certain heavier passenger vehicles can be treated as light‑duty for the purposes of credits and reporting.

Who's affected#

• Trailer manufacturers and trucking businesses in Canada — especially smaller firms that would face added costs if Canadian trailer standards were implemented while the U.S. does not have matching rules.
• Vehicle manufacturers and importers who report under the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations or the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations.
• Companies that sell or report emissions for plug‑in hybrid electric vehicles and for vehicles around the medium‑duty/light‑duty weight threshold.
• The general public and climate-watchers, because the decision affects near‑term GHG reductions. If it is unclear who else is affected, the source notes ongoing consultations with the industry.

Why it matters#

• It keeps Canadian rules aligned with recent U.S. changes, which the government says prevents Canadian firms from being at a competitive disadvantage in the integrated North American market.
• Short‑term climate impact: delaying the trailer standards by one model year would lower expected GHG reductions by about 0.7 megatonnes (Mt) of CO2e for model year 2027 trailers, and by about 3.8 Mt CO2e for trailers of model years 2020–2027 over the 2020–2050 portion of their lifetime.
• Administrative and compliance effects: the update to the plug‑in hybrid reference preserves companies’ ability to calculate emissions correctly; the changed definition of medium‑duty passenger vehicle lets certain heavier electric passenger vehicles earn light‑duty credits rather than being moved into heavy‑duty reporting.
• Trade‑off: affected companies will save on near‑term compliance and investment costs, but they also forego some fuel‑saving and emission‑reduction benefits that would have come from the trailer standards.