Trailer GHG Standards Suspension Extended

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), which keeps Canada’s trailer greenhouse‑gas (GHG) rules suspended for one year to stay aligned with the United States. Practically, this delays the start of Canada’s trailer standards and reduces the expected GHG reductions from the 2018 changes by about 0.4 megatonnes (Mt) CO2e for model year 2025, and 2.4 Mt CO2e for model years 2020 to 2025 combined.

What it does#

• Approves the sixth interim order that the Minister of the Environment made on February 19, 2024 and that the Governor in Council signed on March 1, 2024.
• Suspends the application of the trailer GHG standards in the Heavy‑duty Vehicle and Engine Greenhouse Gas Emission Regulations for up to one year from the date the interim order was made.
• The existing suspension (the fifth interim order) was set to expire on March 13, 2024; this action extends that suspension.
• The interim order could end sooner than one year if it is repealed or if the regulations are amended.
• Environment and Climate Change Canada says it will start a process over the next year to amend the regulations — including potentially repealing the trailer provisions — to maintain alignment with U.S. decisions.

Who's affected#

• Canadian trailer manufacturers, especially smaller firms located mainly in Quebec, Ontario, and the Prairies.
• Trucking companies and other businesses that buy or operate trailers in Canada.
• Companies that import new on‑road heavy‑duty vehicles, engines and trailers for sale in Canada.
• The federal department responsible for the rules: Environment and Climate Change Canada.
• It is unclear whether other groups (for example, fleet owners who would have upgraded equipment for fuel savings) will be directly required to act now; the main immediate effect is on manufacturers and regulated businesses.

Why it matters#

• Short term cost relief: manufacturers and truck fleets avoid the immediate costs of buying or adding technologies to meet trailer GHG rules. Small Canadian makers said they could be at a competitive disadvantage if Canada moved ahead while the U.S. stayed paused.
• Lost fuel and emissions benefits: delaying the standards reduces the projected fuel savings and increases GHG emissions by about 0.4 Mt CO2e for model year 2025 and 2.4 Mt CO2e across model years 2020 to 2025.
• Market alignment: the move keeps Canadian rules in step with U.S. developments, reducing the risk of misaligned rules that could disrupt cross‑border manufacturing and sales.
• Ongoing uncertainty: the government plans regulatory work over the next year, so manufacturers and fleets may still face future rule changes (including a likely repeal of Canada’s trailer provisions) rather than immediate enforcement.