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Canadian Automakers Want Their Government to Ease Up on Carbon Rules

Canadian automakers are pressuring their government to ease the rules associated with cutting carbon emissions from cars. The position has been reported by Automotive News, which goes on to say that a new sense of urgency is at-hand given that Donald Trump will assume the US presidency in a week.

Canada’s car industry is specifically asking the Ontario-based government to change the just-enacted cap-and-trade rules so that it is not disadvantaged in an international environment. That is, such a trading plan requires companies to meet certain thresholds or to buy credits from those that have been complied so that they can exceed the limits.

Importantly, the rules for car makers do not take effect until 2020 but that industry wants the exemption extended until it knows more about what Trump will do, says the publication. It also wants the Canadian government to help finance the cost of new pollution controls.

If the United States has no such restrictions, Canada would suffer, executives are reported to have told Automotive News as they left a meeting earlier this week. Automobiles are Canada’s biggest export.

In the United States and just after the presidential election, auto makers here wrote to President Trump and asked if his team would revise the fuel efficiency standards that they feel are too costly and that are impractical.

Alliance of Automobile Manufacturers, which presents major automakers including General Motors Co, Ford Motor Co and Toyota Motor Corp, wants the Trump administration to find a “path forward,” reports Reuters.

“(T)echnology and change are swamping the regulatory capacity to manage our emerging reality,” the letter said, according to Reuters. “Reform is imperative.”

The current Environmental Protection Agency, however, has sought to formalize the rules that require vehicles to meet a 50 mile per gallon standard by 2025. However, the rule is anything but final, given that the EPA  is set to determine whether such a standard should become “final” in April 2018.

“Automakers have a wide range of technology pathways available to meet the [new] standards,” the EPA said in its statement, as reported by Forbes. “[The new] standards are achievable with very low penetration of strong hybrids, electric vehicles and plug-in hybrid electric vehicles. This finding is consistent with the conclusions the National Academy of Sciences found in a comprehensive 2015 study,” the agency stated.

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