The Canadian automotive industry is being pressured to introduce stringent cuts on emissions in order to meet the obligations of the Kyoto protocol.

Indications of the plans for change emerged in September when Canada's environment minister, Stephane Dion, said that the Californian model for emission control might be adopted.

Now there is speculation that the Canadian and US governments might begin to work more closely on the matter than previously, with Mary Pattenden, climate change director for pressure group Pollution Probe, highlighting the relevance of Mr Dion's Californian allusion in the Detroit News.

Prime Minister Paul Martin is also understood to be keen that the automotive industry design more efficient vehicles, with draft proposals calling for the delivery of Kyoto targets by 2012.

On Wednesday senior Canadian executives from General Motors, Ford, DaimlerChrysler, Toyota and Honda all met with government ministers to discuss the issue further.

Experts say that the changes could have major implications for the domestic automotive industry, but also the North American market as a whole.

If Canada followed the Californian lead on automotive emissions and brought with them a collection of north eastern American states - as they have pledged to do - the outline of the wider industry would start to change.

With these areas together representing around one-third of the North American market, changes to the manufacturing process and a shift in design emphasis towards emission controls would be likely.