Canadian Presentation of CEC Secretariat Report: Destination Sustainability

Evan Lloyd, Execu0ve Director Commission for Environmental Coopera0on 5 May 2011 Pollu0on Probe -‐ Toronto, Ontario

The Commission for Environmental Coopera0on supports coopera-on among the NAFTA partners – Canada, Mexico and the United States – to address environmental issues of con-nental concern, including the environmental challenges and opportuni-es presented by con-nent-‐wide free trade. Des$na$on Sustainability is the latest independent report of the CEC Secretariat.

DESTINATION SUSTAINABILITY Reducing Greenhouse Gas Emissions from Freight Transporta$on in North America Examines the environmental impact of freight transporta-on, speciﬁcally from road and rail modes §  Challenges §  Key Findings §  Recommenda0ons

DESTINATION SUSTAINABILITY Reducing Greenhouse Gas Emissions from Freight Transporta$on in North America Studies and organiza-ons

Summary – Conclusion §  Vision—of an integrated, intelligent, freight transporta-on system for North America—is #1 requirement. §  The policies, regula-ons, incen-ves, investments and technologies necessary to accomplish sustainable freight transporta-on—across North America—will also make our economies more eﬃcient, compe--ve, and energy-‐secure.

Findings: NAFTA Transport -‐ Growth §  NAFTA popula0on will grow from 460 m to 540 m by 2030 (600 m by 2050). §  North American economy will grow by 70-‐130% between 2005 and 2030. §  US interstate highway travel demand, measured in VMT is forecast to increase from 690 billion (2002) to 1.3 trillion by 2026. §  Addi0onal 1.8 million trucks on the road by 2020 §  Total freight tonnage is expected to double from 2002 levels 15,500 MT to 34,000 MT by 2035.

Findings: NAFTA Transport – Modal Share §  By value, 88% of US trade with Canada and Mexico moves on land §  Freight trucks are the dominant mode of land transporta-on among the three countries §  By tonnage (2008): Pipelines 35% Trucks 33% Rail 32%

Findings: Canada §  In Canada, the transporta-on sector (all modes) is the second-‐largest contributor to GHG emissions ü  Within the transporta-on sector, freight transporta-on accounted for approximately 38% of the sector’s GHG emissions in 2007. §  The magnitude of US NAFTA-‐related land trade highlights the importance of north-‐south freight transporta-on corridors ü  In 2008, approximately half of the total truck and rail traﬃc by value in North America was handled by three land ports of entry: Detroit/Windsor, Buﬀalo/ Niagara Falls, and Nuevo Laredo/Laredos

Findings: Trade -‐ Transporta0on -‐ Climate Change §  The transporta0on sector in North America is second only to electricity genera-on in terms of CO2 emissions produced. §  CO2 emissions account for 95% or more of all freight-‐related GHG emissions. §  Freight is the fastest growing source of emissions in the transport sector. §  US freight-‐related emissions increased by 74% from 1990 to 2008.

Findings: Fuel standards aren’t enough Fuel standards alone cannot solve the problem of growing freight emissions Projec-ons for the US show lijle growth for transporta-on sector emissions: 0.7% to 2030 Modes show very diﬀerent rates of growth Despite a 42% increase in VMT 2007–2030, light-‐duty vehicle GHG emissions are projected to decline nearly 12% over the period Freight truck emissions are projected to increase 20% over same period Source US DOT

CHALLENGES 1  Lack of internaliza-on of external costs of freight transporta-on 2  Inadequate coordina-on among North American transporta-on agencies 3  Lack of integrated land-‐use and freight transporta-on planning 4  Extensive delays in truck freight movements across borders 5  Time needed for turnover of ineﬃcient legacy truck ﬂeet 6  Inadequately funding of transporta-on infrastructure 7  Absence of essen-al transporta-on data

KEY RECOMMENDATIONS 1 Coordina0on and Networking §  NAFTA ministerial-‐level North American Transporta-on Forum to work in coopera-on with industry and stakeholders to foster an integrated, intelligent freight transporta-on system for North America

KEY RECOMMENDATIONS 2 Carbon Pricing and System Eﬃciency Strategies §  NAFTA-‐wide carbon price signal to invest in eﬃciency and in low-‐carbon fuel alterna-ves.

KEY RECOMMENDATIONS 3 Investments to Improve the Eﬃciency of the Freight Transporta0on System §  Re-‐invest in road, rail, and waterway infrastructure that is congested and deteriora-ng. §  Incen-ves for advanced fuel-‐saving technologies and the adop-on of intelligent transporta-on systems.

KEY RECOMMENDATIONS 4 Supply Chain Management §  Supply-‐chain carbon accoun-ng §  Cross-‐border and industry collabora-on to reduce “empty miles”

KEY RECOMMENDATIONS 5 Training Eco-‐drivers §  Improve the training and equipping of drivers to op-mize their environmental and economic performance.

KEY RECOMMENDATIONS 6 Gathering and Sharing Data §  Enhance the quality and comparability of freight data, including the measurement of environmental impacts, con-nent-‐wide.

Advisory Group Des$na$on Sustainability was developed with the assistance of an advisory group of representa-ves from transporta-on industries, nongovernmental organiza-ons, and government agencies. Bruce Agnew, Execu-ve Director of the Cascadia Freight Corridor, chair of CEC Advisory Group Rob McKinstry, Manager, Economic Policy and Research Canadian Railway Associa-on Bob Oliver, CEO, Pollu-on Probe

www.cec.org/freight

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Canadian Presentation of CEC Secretariat Report: Destination Sustainability

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