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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