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EvanLloyd,Execu0veDirector

CommissionforEnvironmentalCoopera0on

5May211

Pollu0onProbe-Toronto,Ontario

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TheCommissionforEnvironmental

Coopera0onsupportscoopera-on

amongtheNAFTApartnersCanada,MexicoandtheUnitedStatesto

addressenvironmentalissuesof

con-nentalconcern,includingthe

environmentalchallengesand

opportuni-espresentedbycon-nent

widefreetrade.

Des$na$onSustainabilityisthelatest

independentreportoftheCEC

Secretariat.

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DESTINATIONSUSTAINABILITYReducingGreenhouseGasEmissionsfrom

FreightTransporta$oninNorthAmerica

Examinestheenvironmentalimpactoffreight

transporta-on,specificallyfromroadandrail

modes

Challenges KeyFindings Recommenda0ons

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SummaryConclusion

Visionofanintegrated,intelligent,freighttransporta-onsystemforNorthAmericais#1

requirement.

Thepolicies,regula-ons,incen-ves,investmentsandtechnologiesnecessaryto

accomplishsustainablefreight

transporta-onacrossNorth

Americawillalsomakeour

economiesmoreefficient,compe--ve,andenergysecure.

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Findings:NAFTATransport-Growth

NAFTApopula0onwillgrowfrom460mto540mby2030(600mby2050). NorthAmericaneconomywillgrowby

70130%between2005and2030.

USinterstatehighwaytraveldemand,measuredinVMTisforecasttoincreasefrom690billion(2002)to1.3trillionby

2026.

Addi0onal1.8milliontrucks ontheroadby2020

Totalfreighttonnageisexpectedtodoublefrom2002levels15,500MTto34,000MT

by2035.

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Byvalue,88%ofUStradewithCanadaandMexicomoveson

land

Freighttrucksarethedominantmodeoflandtransporta-onamongthethree

countries

Bytonnage(2008):

Findings:NAFTATransportModalShare

Pipelines 35%

Trucks 33%

Rail 32%

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Findings:Canada

InCanada,thetransporta-onsector(allmodes)isthesecondlargestcontributortoGHGemissions

Withinthetransporta-onsector,freighttransporta-onaccountedfor

approximately38%ofthesectorsGHGemissionsin2007.

ThemagnitudeofUSNAFTArelatedlandtradehighlightstheimportanceofnorthsouthfreight

transporta-oncorridors

In2008,approximatelyhalfofthetotaltruckandrailtrafficbyvalueinNorth

Americawashandledbythreelandports

ofentry:Detroit/Windsor,Buffalo/

NiagaraFalls,andNuevoLaredo/Laredos

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Thetransporta0onsectorinNorthAmericaissecondonlyto

electricitygenera-onintermsof

CO2emissionsproduced.

CO2emissionsaccountfor95%ormoreofallfreightrelatedGHG

emissions.

Freightisthefastestgrowingsourceofemissionsinthe

transportsector.

USfreightrelatedemissionsincreasedby74%from1990to

2008.

Findings:Trade-Transporta0on-ClimateChange

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Findings:Fuelstandardsarentenough

Fuelstandardsalonecannotsolvetheproblemofgrowingfreightemissions

Projec-onsfortheUSshowlilegrowthfor

transporta-onsectoremissions:0.7%to2030

Modesshowverydifferentratesofgrowth

Despitea42%increaseinVMT20072030,light

dutyvehicleGHGemissionsareprojectedto

declinenearly12%overtheperiod

Freighttruckemissionsareprojectedtoincrease

2%oversameperiod

SourceUSDOT

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1 Lackofinternaliza-onofexternalcostsoffreighttransporta-on2 Inadequatecoordina-onamongNorthAmerican

transporta-onagencies

3 Lackofintegratedlanduseandfreighttransporta-onplanning

4 Extensivedelaysintruckfreightmovementsacrossborders

5 Timeneededforturnoverofinefficientlegacytruckfleet

6 Inadequatelyfundingoftransporta-oninfrastructure

7 Absenceofessen-altransporta-ondata

CHALLENGES

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Coordina0onandNetworking

NAFTAministeriallevelNorthAmericanTransporta-onForumtoworkincoopera-on

withindustryandstakeholderstofosteranintegrated,intelligentfreighttransporta-on

systemforNorthAmerica

1

KEYRECOMMENDATIONS

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CarbonPricingandSystem

EfficiencyStrategies

NAFTAwidecarbonpricesignaltoinvestinefficiencyandinlowcarbonfuelalterna-ves.

2

KEYRECOMMENDATIONS

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InvestmentstoImprovetheEfficiency

oftheFreightTransporta0onSystem

Reinvestinroad,rail,andwaterwayinfrastructurethatiscongestedanddeteriora-ng.

Incen-vesforadvancedfuelsavingtechnologiesandtheadop-onof

intelligenttransporta-onsystems.

3

KEYRECOMMENDATIONS

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TrainingEco-drivers

Improvethetrainingandequippingofdriverstoop-mizetheirenvironmental

andeconomicperformance.

5

KEYRECOMMENDATIONS

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GatheringandSharingData

Enhancethequalityandcomparabilityoffreightdata,includingthemeasurement

ofenvironmentalimpacts,con-nentwide.

6

KEYRECOMMENDATIONS

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AdvisoryGroup

Des$na$onSustainabilitywasdevelopedwiththeassistanceofan

advisorygroupofrepresenta-vesfromtransporta-onindustries,

nongovernmentalorganiza-ons,andgovernmentagencies.

BruceAgnew,Execu-veDirectoroftheCascadiaFreight

Corridor,chairofCECAdvisoryGroup

RobMcKinstry,Manager,EconomicPolicyandResearch

CanadianRailwayAssocia-on

BobOliver,CEO,Pollu-onProbe

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www.cec.org/freight