Trailer GHG Standards Suspended for One Year

Summary#

The Governor in Council approved the sixth interim order, Interim Order Modifying the Operation of the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards), which the Minister of the Environment made on February 19, 2024 and which was approved on March 1, 2024. In practice, this keeps the trailer greenhouse-gas (GHG) rules in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations suspended for up to one year so Canada stays aligned with recent U.S. developments.

What it does#

• Approves the sixth interim order that extends the suspension of the trailer GHG emission standards in the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations for up to one year from the date the Minister made the order.
• Keeps the trailer standards from coming into force after the previous suspension expires on March 13, 2024, unless the order ends earlier.
• Maintains alignment with U.S. action (the U.S. trailer provisions have been legally contested and the U.S. Environmental Protection Agency (U.S. EPA) has proposed repealing its trailer rules).
• Signals that over the next year the federal government intends to start a rule-making process to formally remove the trailer standards from Canada’s regulations so the two countries remain aligned.

Who's affected#

• Canadian trailer manufacturers, especially smaller firms in Quebec, Ontario and the Prairies, who would otherwise face new compliance costs.
• Trucking businesses and fleets that buy or operate trailers in Canada.
• Companies that manufacture or import new on‑road heavy‑duty vehicles, engines and trailers for sale in Canada.
• The U.S. regulatory decisions and large U.S. trailer manufacturers matter here because North American markets and supply chains are linked.

If it’s unclear who is affected: the order targets the makers and importers of trailers covered by the regulation (such as box van, refrigerated, container chassis, flatbed and tanker trailers).

Why it matters#

• Economic: suspending the standards reduces short‑term compliance and investment costs for Canadian trailer makers, who worry they could be at a competitive disadvantage if Canada moved ahead alone.
• Environmental: delaying the trailer rules for one more model year would cut the expected emission reductions from the 2018 regulation changes by about 0.4 megatonnes (Mt) of CO2e for the 2025 model year and by about 2.4 Mt CO2e for model years 2020–2025 combined.
• Practical: the move avoids a sudden mismatch with the United States, where trailer standards have been stayed and are under reconsideration, and buys time for Canada to propose a formal regulatory repeal or other long‑term solution.
• Trade and supply chain impact: staying aligned helps avoid costs and disruption for companies that operate across the Canada–U.S. market, but it also delays the fuel‑saving benefits that stricter trailer standards would bring.