California enters into an agreement with Canada to advance cleaner vehicles

Posted: June 27, 2019


California and Canada have entered into an MoU to catalyse the adoption of electric vehicles and share technical information in regulating cleaner fuels. The announcement is the aftermath of Trump administration barring California from regulating vehicle emissions or increase number of zero emission vehicles. The US government in August 2018 proposed freezing fuel efficiency requirements at 2020 levels, which was announced by the Obama administration. The government in the coming months will finalise fuel efficiency standards through 2026 that would also strip California. The Obama government had called for a fleetwide fuel efficiency average of 46.7 miles per gallon by 2026, compared with 37 mpg under the Trump administration’s preferred option.

In June 2019, 17 automakers, including GM, Volkswagen and Toyota had urged the White House to resume talks with California to avoid a lengthy legal battle. Canada is planning to sell only zero-emission vehicles by 2040 and is offering subsidies of up to CAD5000 for zero-emission vehicles. California has allocated USD238m in its 2019 budget for incentives to purchase electric and fuel cell vehicles.

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