No. H019/04 For release April 23, 2004 OTTAWA - The Government of Canada today announced a new four-year program to help the freight transportation sector reduce the growth of greenhouse gas emissions through a combination of financial incentives, awareness programs and pilot projects. ¿Through the Freight Efficiency Program, we will work with the freight sector to reduce greenhouse gas emissions in Canada by supporting innovation within and across modes to enhance the efficiency of the freight transportation system," said Transport Minister Tony Valeri. This $11 million program is part of $32.3 million allocated for the Commercial Transportation Energy Efficiency and Fuels Initiative announced on August 12, 2003. This program falls under the Climate Change Plan for Canada. "Transport Canada remains committed to finding new and innovative solutions to help reduce greenhouse gases," said the Honourable Jim Karygiannis, P.C., M.P., Parliamentary Secretary to the Minister of Transport. "The Freight Efficiency Program is another example of the Government of Canada making good on the greenhouse gas reduction commitments made in the Climate Change Plan for Canada." The Commercial Transportation Energy Efficiency and Fuels Initiative is a four-year program co-led by Transport Canada and Natural Resources Canada (NRCan). Transport Canada is managing the Freight Efficiency Program and NRCan is responsible for the Commercial Transportation Energy Efficiency Rebate Program. "All Canadians have a role to play in addressing climate change," said Natural Resources Minister R. John Efford. "The transportation sector is obviously vital to our country's prosperity and it can be an equally vital part of Canada's efforts to cut greenhouse gas emissions." The Freight Efficiency Program aims to reduce the growth of greenhouse gas emissions in Canada's freight transportation sector through: providing financial incentives to encourage the use of efficiency-enhancing technologies, equipment and practices in the rail, marine and aviation sectors; facilitating the sharing of information; and establishing new awareness programs for shippers and freight forwarders to help them make more informed modal choices. The Freight Efficiency Program will build on Transport Canada's Freight Efficiency and Technology Initiative which is also designed to reduce the growth of greenhouse gas emissions from freight transportation. Funding for this project was provided for in the February 2003 federal budget and is therefore built into the existing financial framework. More information on the Freight Efficiency and Technology Initiative is available. Backgrounders with more information on Transport Canada's freight efficiency programs are attached. -30- Contact: Christina Van Loon Office of the Minister, Ottawa (613) 991-0700 Robin Browne Transport Canada Communications, Ottawa (613) 993-0055 Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada. This news release may be made available in alternative formats for persons with visual disabilities. 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 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 greenhouse gas (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 appear to 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 provided more than $500,000 to seven projects across Canada. Performance Agreements Under this component, the Government of Canada is currently seeking voluntary performance 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 is intended to provide carriers with a better understanding of the impacts of transportation on climate change and to encourage them to take a leadership role in reducing their greenhouse gas emissions. April 2004 BACKGROUNDER FREIGHT EFFICIENCY PROGRAM On August 12, 2003, the Government of Canada announced that it would invest $1 billion towards the implementation of the Climate Change Plan for Canada. This investment is part of the Budget 2003 allocation and builds on $1.7 billion the Government of Canada has invested in climate change over the past five years. Part of this investment will fund the four-year, $11 million Freight Efficiency Program which is part of $32.3 million allocated for the Commercial Transportation Energy Efficiency and Fuels Initiative. The Freight Efficiency Program has three key components. First, financial incentives will be provided to stakeholders to encourage the purchase and installation of greenhouse gas reduction technologies for the air, rail and marine modes. Preference will be given to technologies previously demonstrated under the Freight Efficiency and Technology Initiative. Secondly, the program will support up to three marine shore pilot projects in cooperation with port management and industry stakeholders. These pilot projects will demonstrate options for vessels to use shore-based power supplies, and encourage the implementation of such projects around the country. Thirdly, the program will support the development of new modal choice awareness programs for shippers and freight forwarders. The Commercial Transportation Energy Efficiency and Fuels Initiative will support projects designed to increase the market penetration of efficiency-enhancing technologies, including anti-idling devices, in all modes. The incentives component of the Freight Efficiency Program will begin accepting its first round of proposals in May 2004 April 2004
