Canada-California clean transportation agreement is a win for drivers and industry

Pembina Institute reacts to the federal government’s transportation agreement with California

OTTAWA— Isabelle Turcotte, federal policy director at the Pembina Institute, made the following statement in response to the announcement of the Canada-California transportation MOU:

“The Pembina Institute welcomes today’s announcement of the transportation MOU between Canada and California. With transportation making up a quarter of Canada’s total emissions, strong action in the sector 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.

“In the face of the U.S. rolling back standards set under the Obama presidency that ensured passenger vehicle efficiency improved through 2025, we are pleased to see that Canada is sending a strong signal that they will work with California to maintain those standards. With the growing climate crisis, and strides in other areas of transportation, now is not the time to move backwards. 

“We are also excited that the Canadian government is signaling their interest in moving towards a zero-emission vehicle (ZEV) sales mandate to meet their target. While the people of 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. We know that Canadian drivers 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 the implementation of its Clean Fuel Standard, we are encouraged to know that the federal government will be deepening its collaboration with California. California’s decade of experience with a low-carbon fuel standard shows this type of policy works — both to achieve real greenhouse gas emissions reductions, and to create a market signal to grow the clean fuels we know we need in order to decarbonize transportation, Canada’s second-highest emitting sector." 



Kelly O’Connor
Associate communications director


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