Sustainability Working Group:
CAPC - Kyoto Protocol

Final - November 22, 2002

Canada’s automotive parts makers and assemblers have made significant investments to improve the energy efficiency of their plants and manufacturing processes using state-of-the-art technologies. Vehicle manufacturers have also invested billions of dollars in advanced fuel efficiency technologies, including gasoline electric hybrid and fuel cell vehicles.

• The Canadian Automotive Sector must remain competitive in the global market for automotive investment.

• Since Canadian automotive producers sell into an integrated continental market place, it is essential that fuel consumption objectives recognize the necessity for common product, and hence requirements for fuel consumption objectives for mass market place vehicles must be harmonized with those in the U.S and Mexico.

• The Canadian Government should provide the Canadian Automotive industry with support in the form of incentives for the development and commercialization of new technology (incentive support for advanced technology vehicles and advanced process and manufacturing technologies).

• Should the Government of Canada ratify the Kyoto Protocol, it needs to develop a detailed plan for implementation that involves all industry stakeholders and ensures ongoing employment and economic growth in the domestic automotive industry.

• The existence of a developed and competitive infrastructure of supply and service industries is an important factor in the competitiveness of Canada’s auto industry. Hence, impacts of measures to reduce greenhouse gas emissions on those industries (including the steel industry and other important automotive suppliers) must be ameliorated with pro-active programs and incentives which will assist those industries to remain viable and competitive.