No. H105/04
For release - November 15, 2004

Air Sector Agrees to Reduce Greenhouse Gas Emissions

OTTAWA — Canada's aviation sector has agreed to reduce the growth of greenhouse gas (GHG) emissions to help protect the environment.

Transport Minister Jean-C. Lapierre today announced that a voluntary performance agreement has been reached with the Air Transport Association of Canada (ATAC) to reduce GHG emissions in the freight aviation sector. The agreement includes a yearly reduction target, an action plan and annual progress reporting.

"This agreement demonstrates our commitment to working with the transportation industry to achieve our common goal of sustainable transportation and a reduction in the impact of transportation on climate change," Mr. Lapierre said.

In its voluntary agreement with Transport Canada, ATAC will encourage its members to improve their energy efficiency and thus reduce their collective emissons by an average of 1.1 per cent a year, reaching a total cumulative improvement of 24 per cent by 2012 compared to the base year of 1990.

Other details of the agreement will be worked out in the coming months through a Memorandum of Understanding to be signed by both parties.

Under the Government of Canada's Freight Efficiency and Technology Initiative, Transport Canada is working with the transportation sector to reduce the growth of GHG emissions in all modes of transport. The initiative includes negotiating voluntary performance agreements with the individual sectors of the freight transportation industry, and funding demonstrations of energy-efficient technologies and operating practices.

Transport Canada and ATAC will publish an annual report detailing the progress toward the emissions reduction goal under the new voluntary agreement.

A backgrounder on the Freight Efficiency and Technology Initiative is attached.

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BACKGROUNDER

FREIGHT EFFICIENCY AND TECHNOLOGY INITIATIVE

The Freight Efficiency and Technology Initiative is part of the Government of Canada's Action Plan 2000 on Climate Change. It is expected to result in approximately a two-megatonne reduction of greenhouse gas emissions (GHG) by 2010. Transport Canada is leading the initiative with the cooperation of Natural Resources Canada.

This five-year initiative is designed to reduce the growth of GHG emissions from freight transportation. It consists of three components:

Freight Sustainability Demonstration Program

This program supports the demonstration and evaluation of innovative tools, technologies and best practices that hold promise for cost-effective reduction of GHG emissions, but where risk or uncertainty impedes early adoption. The projects are selected through a competitive process that is held twice a year. To date, the program has allocated more than $2.65 million to 21 projects across Canada.

Voluntary Agreements

Under this component, the Government of Canada is seeking voluntary agreements from industry associations within each mode - rail, marine, aviation and trucking - to outline concrete initiatives for reducing GHG emissions. Agreements will include an emission reduction target and an action plan to achieve that target.

Training and Awareness

This component provides carriers with a better understanding of the impacts of transportation on climate change and encourages them to take a leadership role in reducing their greenhouse gas emissions.

November 2004