2006 September Report of the Commissioner of the Environment and Sustainable Development

Clearly identified environmental objective(s)

There is a clear environmental objective—the reduction of greenhouse gas emissions by light-duty vehicles.

Baseline levels that exist at the beginning of the agreement

The 2010 business-as-usual emissions* baseline projection upon which the agreement was negotiated with industry did not take into account all of the updated information available at the time of negotiations in 2004–05. Using Canada's Emissions Outlook Update: 1999, Natural Resources Canada had estimated that projected greenhouse gas emissions from light-duty gasoline vehicles would be 90.5 million tonnes in 2010. However, Environment Canada's National Inventory Report 1990–2002 noted that 2002 emissions from that sub-sector were already over 90 million tonnes.

Clear targets with timelines

There is a clear overall target for 2010, along with intermediate targets for 2007, 2008, and 2009.

Meaningful performance measures

A complex model has been developed for measuring progress against the targets.

Clearly defined roles and responsibilities

Roles and responsibilities of Natural Resources Canada and the automotive industry are defined by the agreement.

Consequences for failing to meet targets and rewards and recognition for achieving them

The agreement precludes penalties for companies, or for the industry as a whole; there is only a general statement that "the Government of Canada has the right to regulate . . . and will do so if it deems necessary." However, Natural Resources Canada has stated that fewer reductions would be possible under a regulated approach than through a voluntary agreement.

Periodic public reporting requirements

There is a commitment to annual performance reporting. The Department has indicated that periodic progress reports and updates will be made public.

Provision for regular credible verification

The model, data, and results used to determine progress will not be independently verified prior to the release of any reports.

Regular evaluation of initiative to determine progress and consider whether corrective action is necessary

Natural Resources Canada has indicated that an interdepartmental Director General Committee is in place to guide government evaluation of progress and to identify any necessary corrective action.