Obama Defends Keystone Process; Mexico, Canada Agree To Fuel Standards

International Business Times

Published Feb 19, 2014 11:09PM ET

Updated Feb 19, 2014 11:25PM ET

By Meagan Clark - Mexican President Enrique Pena Nieto and Canadian Prime Minister Stephen Harper agreed at a summit on Wednesday to adopt the tough new fuel standards for heavy-duty trucks that President Barack Obama set for the U.S. on Tuesday, and Obama reiterated that a decision on the Keystone XL pipeline must abide by a set process. 

The standards, which the Environmental Protection Agency and the Transportation Department must draft by March 2015 and complete a year later, are intended to reduce greenhouse gases through the president’s executive power, which bypasses Congress.

The limits on pollution combine both with previous U.S. regulations that require cars and light trucks to burn fuel more efficiently and with proposed rules to limit carbon emissions of power plants. The new standards would allow Obama to cut carbon pollution in the U.S. by 17 percent from 2005 levels by 2020, still short of his original goal of 80 percent reduction by 2050.

The three leaders gathered in Toluca, Mexico, 40 miles west of Mexico City, to discuss economic alliances and speak to a group of North American business, civil society and education leaders.

Among those businesses was TransCanada Corp., which has proposed construction of the Keystone XL pipeline to transport oil sands from Alberta to Texas.

A U.S. State Department report released in late January concluded that the pipeline would not significantly impact the environment, a concern Obama had previously cited as a reason to not approve the project.