Canada and California team up to tackle vehicle climate pollution

June 26, 2019. Reducing transport pollution will help Canadians save money, clean our air, and help fight climate change. The auto sector is changing quickly, with electric and autonomous vehicles and other advanced technologies creating huge new opportunities for automakers, parts manufacturers, software developers, and Canada's mining sector. As demand for cleaner and more efficient vehicles grows, investing in innovation is essential to ensure that Canadian automakers remain competitive and that we continue attracting the jobs of the future.

   Today, the Minister of Environment and Climate Change, Catherine McKenna, and the Chair of the California Air Resources Board, Mary Nichols, signed a new cooperation agreement to advance clean transportation.

   With the fifth-largest economy in the world, California remains a global leader in harnessing clean solutions to spark economic growth and create new, middle-class jobs. Canada likewise remains committed to ambitious climate action, and is taking effective, concrete measures to reduce pollution throughout its economy. Cleaner vehicles and fuels are key to meeting Canada's climate goals.

   The agreement commits Canada and California to work together on their respective regulations to cut down on greenhouse gas pollution from vehicles like cars, pickup trucks and SUVs. Effective regulations, like those currently in effect in California and Canada, help ensure that people can drive fuel-efficient cars that cut down on pollution and save money in fuel costs.

   The agreement also commits Canada and California to work together to promote the uptake and opportunity of cleaner vehicles. This will ensure Canadians have access to a wide variety of vehicles as we work toward having all light-duty vehicles sold here being 100% zero-emission vehicles by 2040. To help us get there, this year's federal budget offers Canadians a rebate of up to $5,000 for qualifying zero-emission vehicles and other tax incentives for businesses that want to upgrade to zero-emission fleets. In California, automakers are required to ensure that zero-emission vehicles make up a growing proportion of their sales, and the state aims to have five million zero-emission vehicles on the road by 2030.

   Canada and California will also share best practices and technical information about regulating cleaner fuels, building on California's success with its pioneering Low-Carbon Fuel Standard. Canada is developing a Clean Fuel Standard that will cut emissions by 30 million tonnes in 2030—equivalent to taking 7 million cars off the road.