Automakers will be in for a shock when Ottawa releases its promised electric vehicle regulations on Tuesday.
CBC News reports that a senior government official has revealed that Ottawa plans to release final regulations that will ensure all new passenger cars sold in Canada are zero-emission vehicles by 2035.
The official, who was not authorized to speak publicly, said the new regulations are aimed at ensuring automakers produce enough affordable zero-emission vehicles to meet demand.
This regulation is called the “Electric Vehicle Availability Standard.”
The person said Canada is concerned about other countries, particularly the United States, monopolizing the supply of zero-emission vehicles. Several states have already adopted sales targets for zero-emission vehicles.
This regulation applies to car manufacturers, not dealers. Under this law, manufacturers must earn enough credits to demonstrate that they are meeting their goals.
Automakers earn credits for EV sales
Manufacturers earn credits based on the number of low- and zero-emission vehicles they sell, and those credits determine whether they comply with regulations. Different vehicles earn different amounts of credits depending on how close they come to zero-emissions standards.
The official said automakers could earn early credits through the compliance system for up to 10 percent of their overall 2026 compliance requirements if they bring more EVs to market by then. he added.
Automakers can also earn more credits if they help build EV charging infrastructure.
Companies that exceed or fall short of their goals can sell or buy credits from other companies or use bank credit.
The official said details of the regulations to be enacted under the Canada Environmental Protection Act would be made clear on Tuesday.
This regulation will apply from the 2026 model year, and sales targets will increase every year until 2035.
The federal government wants 20% of cars sold to be zero-emission vehicles by 2026. This target he increases to 60% by 2030 and 100% by 2035.
according to 2022 Government Analysisthe total expected cost to consumers of zero-emission vehicles and chargers is $24.5 billion over 25 years, while Canadians can expect to save $33.9 billion in net energy costs.
These estimates are part of a draft and are subject to change once the government releases its final analysis.
This is no ordinary road. You can actually charge your electric car while driving. Electreon’s Stefan Tongur explains how electric cars are charged on this small road in Detroit, and he shows CBC News how it works.
Policy will prevent 430 million tonnes of emissions
According to the same regulatory analysis, this policy would prevent an estimated 430 million tons of greenhouse gas emissions.
Environmental Defense, a Canadian environmental think tank, estimates that the policy could prevent the consumption of enough gasoline to fill about 73,000 Olympic-sized swimming pools.
“Given that cars can last for 15 years, if not longer, after purchase, 2035 needs to be the last year new gasoline-powered vehicles will be sold in Canada, if that’s a possibility.” In fact, by 2050, carbon emissions will reach net zero,” said Nate Wallace, Clean Transportation Program Manager at Environmental Defense.
Although emissions from Canada’s transportation sector have declined since 2005, it remains the second-largest source of greenhouse gas pollution.
The regulation aims to decarbonize the transport sector and eliminate vast amounts of air pollution in urban areas. Analysis shows that air pollution from cars increases the risk of developing lung cancer in adults and asthma and leukemia in children.
The draft analysis says emissions cause an estimated 1,200 premature deaths and millions of non-fatal health problems each year.
Auto industry points out that EV targets are too strong
But auto industry representatives say the sales obligation is too strong.
“Instead of dictating what individuals have to buy, we suggest that the government creates the right environment to stimulate demand,” said Tim Royce of the Canadian Automobile Dealers Association.
Royce also called on the government to consider the costs to families and the challenges associated with charging electric vehicles, especially for people living in rural Canada.
He also expressed concern about whether the power grid will be able to handle the demand for all the EVs that will come to market.
“Restricting the purchase of electric vehicles that Canadians cannot afford or cannot recharge would be a fabricated policy failure in Canada,” Royce said. “Let’s make this right.”
The Canadian Automobile Manufacturers Association, which represents Ford, Stellantis and General Motors, said automakers are working to electrify production. But CEO Brian Kingston said stronger incentives were needed to make zero-emission vehicles (ZEVs) more affordable.
“The upcoming ZEV mandate will leave Canadians in the cold,” Kingston said. “Today, we’re asking the government to help Canadians switch to electricity by providing the support they need, not forcing them to decide what Canadians can and can’t buy.”
Challenges for low-income households
by Draft regulatory analysissays the policy is challenging for “northern and remote communities” and that the government “continues to assess measures that could help facilitate this transition.”
Despite the fuel savings, the draft regulatory analysis says the regulation would disproportionately impact low-income households who cannot afford home charging equipment and may need to rely on public charging stations. “Therefore, there may be a premium charge.” electric bill. ”
To ensure an easy and fair transition, the draft analysis says the government will work on policies that ensure everyone has access to ZEVs and the necessary charging infrastructure “regardless of economic or regional differences”. .
Independent think tank Clean Energy Canada says EVs will save Canadians money.
a recent reports The organization’s research found that the typical Canadian household could save up to $4,000 a year with an electric vehicle over an internal combustion engine vehicle.
“EVs represent significant savings for Canadian families,” said Joanna Kyriazis, director of communications for Clean Energy Canada. “That’s money that can be used for other things.”
