Federal transportation agreement with California
The announcement of the transportation MOU between Canada and California (is good news). With transportation making up a quarter of Canada’s emissions, action here is critical to meet climate targets and ensure cleaner air now and for future generations. California, as the fifth largest global economy, has been a leader in the climate space, particularly in transportation, and both jurisdictions can learn from each other and exchange best practices.
We are also excited that the Canadian government is signalling its interest in moving towards a zero-emission vehicle (ZEV) sales mandate to meet their target. While Quebec and British Columbia already benefit from provincial ZEV mandates, a national sales mandate would be the most effective way to accelerate the transition to electric vehicles while being zero-cost to taxpayers. Canadians want more electric vehicle options — dealerships are reporting waitlists to buy EVs, but automakers prioritize areas with ZEV mandates. With a mandate for all car sales to be ZEVs by 2040 — supported by rebates — industry, customers, and the environment win.
As Canada moves forward with its Clean Fuel Standard, we are encouraged that the federal government will be collaborating with California. California’s decade of experience with a low-carbon fuel standard shows this type of policy works — both to achieve greenhouse gas emission reductions, and to create a market signal to grow the clean fuels we need in order to decarbonize transportation, Canada’s second-highest emitting sector.
Pembina Institute, Ottawa