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Reuters Bumpy Road Seen for New Canadian Emission Rules

Date: 25-Sep-06
Country: CANADA
Author: Frank Pingue

Canadian Vehicle Manufacturers' Association president Mark Nantais feels the current voluntary deal has worked well to meet targets and keep costs under control.

The current emissions agreement calls on automakers to cut 5.3 megatonnes in annual greenhouse-gas emissions by 2010, when the new rules could come into effect.

"We'll work with the federal government to help them understand the implications of California, because I don't think they do at this point in time," said Nantais. "What we'd end up with is something which provides virtually no benefit for Canadians but a great deal of cost to Canadians."

The Conservative government, which has dismissed Canada's Kyoto protocol targets as unobtainable, has said it will focus more on fighting smog and improving air quality and less on reducing the greenhouse gases blamed for global warming.

Government officials were not immediately available for comment.

Ottawa is expected to unveil a new environmental package next month. The Conservatives are expected to use California, which has the most stringent vehicle-emission rules in North America, as a model for developing the new environmental plan.

This week, California sued six of the world's biggest automakers over global warming, charging that greenhouse gases from their vehicles have caused billions of dollars in damage.

The CVMA, which represents Canada's largest manufacturers of light and heavy duty motor vehicles, believes stricter rules will force some consumers to drive older, less fuel-efficient vehicles longer as a way to avoid the extra costs that will be added to new cars.

"New vehicle purchases are a deferrable decision, and people, we have seen, will defer their decision to purchase a new vehicle," said Nantais.

According to media reports, the plan to reduce vehicle emissions will take effect in 2010, when the current agreement, signed by the previous Liberal government, expires.

(US$1=$1.12 Canadian)
(Additional reporting by Louise Egan in Ottawa)

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