Thank you. Those are all questions that are taken into consideration as we move through the sector-by-sector regulatory process.
With regard to transportation, I can't remind Canadians often enough that the largest source of greenhouse gas emissions in Canada is the transportation sector, which produces fully 25% of our annual GHGs.
After addressing cars and light trucks with regulations, first from 2011 to 2016, and recently 2017 to 2025, we brought in heavy-duty regulations for full-sized pickup trucks, heavy vehicles, tractor-trailer units, and what are called “vocational trucks”, that is, garbage trucks and a variety of heavy-duty service vehicles. I was delighted that these regulations were welcomed by the trucking industry a week ago when we made the announcement. They achieve significant reductions in our GHG reduction targets, and we estimate that between model years 2014 and 2018 we will reduce GHG emissions from this heavy-truck category by fully 50%. At the same time, fuel consumption will be reduced by 50% and the operators of these heavy-duty tractor vehicles will see savings to the tune of about $8,000 a year.
As we publish these regulations, going sector-by-sector in the regulatory impact analysis statements, we always recognize there are some costs. But in every sector that we have regulated so far, the benefits have outweighed the costs by billions of dollars, on the order of 4:1 to 6:1.
I should come back and say that GHG reduction from the heavy-truck sector is 23% but the fuel savings are almost 50%.
There has been some comment from some quarters asking why our heavy-truck regulations, which are aligned with those of the Americans, came in two years after the American announcement. The answer to that is we have very different regulatory circumstances in Canada. We have to work with the provinces and address climate and road differences in the vast expanses of Canada, and we wanted to make sure that we got it right. We are now aligned, and I was delighted that the industry issued its support for the regs.