By bringing people and goods together, transportation represents a key element of the Canadian economy and society. However, motorized transportation has adverse health and environmental impacts.

Transportation is one of the largest sources of air pollution in Canada. The combustion of fossil fuels to power vehicles and engines (on and off road) - cars and trucks; large trucks and buses; recreational vehicles; lawn and gardening equipment; farming and construction; forklifts and ice resurfacers; rail and marine - has major adverse impacts on the environment and health of Canadians.

Initiatives to reduce emissions from vehicles, engines and fuels can have significant positive effects on air quality, acid rain, smog and climate change. The federal government is committed to protecting the environment and the health of Canadians by implementing measures to reduce emissions from vehicles. This includes developing regulations for vehicles and engines, promoting sustainable transportation options, ensuring efficient modes of transportation and by promoting improved land-use planning and practices.

On February 19, 2001, the Minister of the Environment announced that the Government would make significant investments in new measures to accelerate action on clean air and published the Federal Agenda on Cleaner Vehicles, Engines and Fuels. The Agenda sets out a series of regulatory and non-regulatory measures to be developed and implemented over the next decade to further protect the health of Canadians and the environment by reducing emissions from vehicles, engines and fuels.