Thank you very much. My name is Peter Valiquet. I'm here on behalf of the Canadian Natural Gas Vehicle Alliance. Once again, thank you for the opportunity to appear here today as a representative of that association.
Heavy natural gas vehicles provide a proven cost-effective way to reduce carbon emissions and improve local air quality using Canadian technology. Greenhouse gas emissions from on-road heavy diesel vehicles are a growing problem in Canada. Heavy diesel vehicles include trucks, buses, and heavy work vehicles.
Emissions from heavy diesel vehicles have increased by 19 megatonnes since 1990. This represents about half of the growth in carbon emissions from on-road vehicles since 1990. Heavy diesel vehicles are also expected to be one of the fastest-growing areas of energy use through 2020. Natural Resources Canada expects that efficiency gains will only partly offset the projected growth in emissions from heavy diesel vehicles. Existing federal policy measures and changes to diesel vehicle technology will have little impact on emissions from heavy diesel vehicles.
There are proven lower emission technologies that can reduce emissions. Compared to heavy diesel vehicles, heavy natural gas vehicles from original equipment manufacturers are a leading green technology solution. Canadian companies are world leaders in the area of lower emission natural gas engine technologies. Westport Innovations and its joint venture company, Cummins-Westport, produce the lowest emission internal combustion engines available for heavy vehicles. These engines are available in a range of heavy trucks and buses that are sold by original equipment manufacturers.
The Government of Canada needs to encourage the use of best available commercial technology if current heavy diesel vehicle greenhouse gas trends are to be slowed and ultimately reversed. Canada's natural gas vehicle industry has three recommendations to reduce the harmful environmental impact of heavy vehicles.
One, invest $1.5 billion in sustaining long-term fiscal measures to lower the capital barrier to adoption for commercial fleets that purchase lower emission vehicles, including heavy natural gas vehicles. This funding would target 10% of heavy vehicles used in Canada. It would accelerate the replacement of older higher emission diesel vehicles. There would be a 7.5 megatonne carbon benefit over the life of the vehicles as a result of implementing this recommendation.
Two, tie fiscal measures to emissions reduction effectiveness, as measured on a well-to-wheel life cycle basis. For example, heavy natural gas vehicles reduce carbon emissions by 20% to 25%. If renewable natural gas or bio-methane produced from waste sources is used, the carbon benefit increases to 85% to 90% on a life cycle basis.
Three, support early stage market development activities, including vehicle demonstrations and education and outreach efforts so as to build awareness, reduce perceived risk, and engage heavy vehicle commercial fleet owners. Fleet owners want to reduce their fuel costs and green their fleets. Heavy natural gas vehicles have a lower cost per kilometre and can reduce the environmental impact of fleet operations. Encouraging the use of heavy natural gas vehicles also means more green collar jobs for Canadians in vehicle, component, and refuelling station manufacturing.
The Government of Canada can act to reduce greenhouse gas emissions from heavy diesel vehicles. Heavy natural gas vehicles provide a cost-effective lower emission solution using made-in-Canada technology. This means cleaner air for Canadians, more jobs for Canadians, and increased Canadian competitiveness, all while, one, capitalizing on Canadian technology and, two, with little to no lifestyle impact.
Thank you for your interest in this issue. I would be pleased to answer any questions.