Energy Use in the Transportation Sector

Diesel consumption increased 17% between 2000 and 2020, which was driven by the increasing use of medium- and heavy-duty vehicles on Canadian roads. Moreover, motor gasoline consumption, including ethanol, also increased 7%, with freight transportation vehicles and off-road vehicles accounting for 69% and 31% of that increase, respectively.

Toward the end of the 1970s, the Canadian government proposed voluntary targets for the automotive industry. Performance standards for passenger vehicles improved from 13.1 L/100 km to 8.6 L/100 km between 1978 and 1985, but saw little further change up to 2010, because no strict fuel efficiency standards were in place. Targets for light trucks were introduced in 1990, resulting in a performance improvement from 11.8 L/100 km to 10.0 L/100 km by 2010.

In October 2010, the Government of Canada approved the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations . The goal of these regulations was to reduce CO₂ emissions by 12% to 19%, depending on the light-duty vehicle category.

For 2017–2025 model year passenger vehicles, the GHG emission target value applicable to a given vehicle’s footprint is expected to decrease by 5% on average per year, using the 2016 model year standards as the baseline and applying that rate each year, up to and including the 2025 model year. Most light trucks face greater challenges in terms of GHG emissions than typical passenger vehicles due to their specific features (towing capacity, storage room, additional passenger seat). Consequently, the target values for GHG emissions for 2017–2021 model year light trucks have decreased by a lower annual rate, i.e. 3.5%. In recent years, initiatives and regulations designed to encourage technological progress were introduced for all other transportation modes as well as to increase their energy efficiency and improve their performance.

Energy efficiency improvements in the transportation sector resulted in savings of $11 billion for Canadians in 2020.

Energy efficiency in the transportation sector improved 19% between 2000 and 2020, resulting in savings of 417.3 PJ in energy in 2020. These savings were driven by energy efficiency improvements in passenger transportation (178.5 PJ) and freight transportation (238.7 PJ).

The mix of fuels used in the passenger transportation sub-sector has remained relatively constant between 2000 and 2020. However, the COVID-19 pandemic had a major impact on all sub-sectors in 2020. As a result, the relative share of fuel use has fluctuated more significantly, but should stabilize in 2023. Motor gasoline has been the main energy source, representing 81% of the fuel mix used in 2020.

A growing number of Canadians bought light trucks (including minivans and sport utility vehicles [SUVs]) instead of vehicles with a better fuel consumption rating. Light truck sales accounted for 68% of all new passenger vehicles sold in 2020, compared to 36% in 2000. This shift from cars to light trucks has resulted in a significant increase in passenger-transportation energy consumption. Light truck energy consumption increased at a faster pace (i.e. 47%) between 2000 and 2020 than any other mode of passenger transportation (except for motorcycles, which represent a small share of consumption).

Air transport, an increasingly popular mode of transportation, was significantly impacted by health crisis management measures in 2020. The pandemic’s impact was reflected in a significant decrease in activity of 41% in Pkm covered, resulting in a 32% decrease in energy consumption.

The mix of fuels used in the freight transportation subsector remained relatively constant between 2000 and 2020. Diesel was the main energy source, representing 66% of all the fuels consumed for freight transportation.

Just-in-time delivery stimulated the demand for heavy truck transportation. ^{Footnote 5}

Using transport vehicles as virtual warehouses requires a transportation system that is “in time” and very efficient. The number of heavy trucks increased by 64% from 2000 to 2020. This new trend in the freight transportation subsector has contributed to the increase in activity. Heavy trucks transported 294.7 billion Tkm in 2020, an increase of 46% compared to 2000.

Despite the significant increase in the number of trucks, rail transport remains the main mode of freight transportation in Canada.

For many goods, such as coal and cereal, trucks are not an efficient mode of transportation. Rail and marine transport continue to be the modes of choice. They therefore have an important place in the freight transportation sector. Rail transport holds the first position in terms of Tkm of freight transported with 420.2 billion Tkm in 2020, 30% more than in 2000.