Check Engine Light: Climate Policy Overheats Transportation Costs in Canada

The Government of Canada has declared meeting its commitments under the United Nation’s Paris Agreement as one of its highest policy priorities. In 2016, the federal government established the Pan-Canadian Framework on Clean Growth and Climate Change (PCF) with the intent of reducing Canadian greenhouse gas (GHG) emissions by 30% below 2005 levels by the year 2030. Now, the transportation sector faces a significant economic impact because of the PCF through the cumulative impact of taxes, subsidies and mandatory regulations designed to reduce GHG emissions.

This report overviews some of the projected direct and indirect costs of the PCF on the movement of goods and people, with a particular focus on light and heavy road vehicles.  It highlights the need for flexible and reduced regulatory burdens to minimize the impact of climate policy on the competitiveness of Canada’s transportation sector.

Click here to read the full report.

To learn more on how Canada’s regulatory system is a mix of complex, overlapping rules from all levels of government that has created a costly and uncertain environment to run a business, visit RegulateSmarter.ca.