New draft federal rules are key to creating EVs extra obtainable and inexpensive to all Canadians

December 22, 2022

1

OTTAWA — Ekta Bibra, senior coverage advisor at Clear Power Canada, made the next assertion in response to federal authorities’s new draft design of its regulated zero emission automobile gross sales targets (also called a zero-emission automobile mandate):

“On the subject of electrical automobiles, one easy reality holds true around the globe: nations with sturdy EV insurance policies have extra electrical vehicles on the highway. And controlled zero-emission automobile gross sales targets have been proven again and again to be probably the most efficient methods to assist EV uptake.

“The progress made on the federal authorities’s new regulated zero-emission automobile gross sales targets is nice information for a majority of Canadians, who’re inclined to change pump for plug once they purchase their subsequent automobile.

“Presently in Canada, the 2 provinces with their very own model of a mandate—B.C. and Quebec—are kilometres forward relating to EV gross sales. In B.C., one in 5 new vehicles offered within the third quarter of 2022 had been electrical, in comparison with one in 13 in Ontario. This new Canada-wide coverage is desperately wanted to even the taking part in area and make sure that Canadians from coast to coast can entry the cost-saving advantages of going electrical.

“The truth is, a current Clear Power Canada report discovered that Canada’s hottest EVs would typically save drivers greater than $10,000, in comparison with an analogous gasoline automobile. And one other current research discovered that rules to part out gasoline vehicles by 2035 would reduce EV costs by 20% as automakers are compelled to promote extra inexpensive fashions, as an alternative of simply luxurious EVs, with a view to meet their targets. Briefly, regulated ZEV gross sales targets are key to creating EVs each extra obtainable and extra inexpensive.

“Most nations which have profitable insurance policies in place have used easy, quick monetary penalties for automakers to make sure compliance with the principles. Nevertheless, beneath the newly proposed Canadian regulation penalties would should be legally enforced. This creates complexity, uncertainty and is a time consuming course of. We sit up for working with the federal authorities to make sure that the regulation is well-designed and in step with best-in-class insurance policies elsewhere on the earth.

“This new coverage marks an important fork within the highway for Canadian local weather motion. It’s thrilling to see the federal authorities take the excessive highway towards cleaner, extra inexpensive vehicles for all Canadians.”

Key info

Transportation makes up 24% of emissions in Canada, and passenger automobiles make up round half of that.
Clear Power Canada analyzed quite a lot of standard electrical automobile fashions earlier this yr, evaluating their complete possession prices with that of gasoline equivalents. The evaluation discovered that the electrical Hyundai Kona, Canada’s second best-selling EV in 2021 (after the Tesla Mannequin 3), is $10,500 cheaper to personal than the gas-powered Kona over its lifetime assuming a gasoline value of $1.35. If gasoline costs had been to common $2, as we’ve seen in components of Canada this yr, the electrical Kona is $17,800 cheaper to personal than the gas-powered Kona.
4 of the highest 5 nations general within the newly-released EY Electrical Car Nation Readiness Index are additionally ranked within the prime 5 for EV regulation (China, Norway, UK and Germany). A spokesperson mentioned, “It’s clear that there’s a sturdy correlation between general success and the energy of regulation.”
A current report from EY identified that, “if nations wish to scale back their emissions from automobiles and assist meet local weather targets by a transfer to EVs, then it’s clear that regulation is totally key”… A current research from Environmental Defence discovered {that a} mandate in keeping with Canada’s 2035 gasoline automobile ban would reduce EV costs by 20% as automakers are compelled to promote extra inexpensive fashions, as an alternative of simply luxurious EVs, with a view to meet their targets.