Trailer GHG Standards Suspended for One Year

Summary#

This Order approves an interim measure that pauses Canada’s trailer greenhouse‑gas (GHG) rules so they do not take effect while similar U.S. rules are in flux. The Minister issued the interim order on February 19, 2024, and the Governor in Council approved it on March 1, 2024. The pause can last up to one year from when the interim order was made.

What it does#

• Approves the Interim Order Modifying the Operation of the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations (Trailer Standards), which keeps the trailer GHG rules from applying in Canada for up to one year.
• Continues a sequence of temporary suspensions that have prevented Canada’s trailer standards from coming into force since 2019.
• Means the trailer rules in the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations will remain suspended unless the order is repealed or the regulations are changed sooner.
• The order would have stopped working after 14 days if not approved by the Governor in Council; this approval extends that suspension for the stated period.
• Environment officials say the delay reduces expected GHG savings by about 0.4 Mt CO2e for model year 2025 trailers and by about 2.4 Mt CO2e for trailers from 2020 to 2025 combined.

Who's affected#

• Canadian trailer manufacturers, many of them small businesses (notably in Quebec, Ontario and the Prairies), are the main group affected.
• Companies that make or import new on‑road heavy‑duty vehicles, engines and trailers for sale in Canada are also affected because those are the firms the Regulations target.
• Trucking companies and fleet operators may notice slower adoption of fuel‑saving trailer technologies and the related operating cost changes.
• The measure is a response to court and rulemaking activity by U.S. agencies such as the U.S. Environmental Protection Agency (U.S. EPA) and the National Highway Traffic Safety Administration (NHTSA), and to industry actions in the United States.

Why it matters#

• The pause is meant to keep Canada aligned with the United States so Canadian makers don’t face a market disadvantage if only Canada enforces trailer standards.
• In the short term, manufacturers and fleets save on compliance and equipment costs. In return, drivers and companies miss some fuel savings that would have come from more efficient trailer designs.
• There is a measurable environmental trade‑off: delayed rules mean fewer GHG reductions over the lifetime of affected trailers (see the 0.4 Mt CO2e and 2.4 Mt CO2e figures above).
• Over the next year, Environment and Climate Change Canada plans to start a process to repeal the trailer standards in Canada so rules stay aligned with U.S. policy.