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Canada moves to mandate electric vehicle sales starting in 2025

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3 minute read

By Mia Rabson in Ottawa

One-fifth of all passenger cars, SUVs and trucks sold in Canada in 2026 will need to run on electricity under new regulations Environment Minister Steven Guilbeault is proposing Wednesday.

By 2030, the mandate will hit 60 per cent of all sales and by 2035, every passenger vehicle sold in Canada will need to be electric.

Manufacturers or importers who don’t meet the sales targets could face penalties under the Canadian Environmental Protection Act.

Canada still has a long way to go before approaching the first target in 2025.

In the first six months of this year, electric vehicle sales, including fully-electric and plug-in hybrid vehicles, made up just 7.2 per cent of new car registrations. For all of 2021, the proportion was 5.2 per cent.

Under the draft regulations, to be formally published Dec. 30, the government proposes tracking the sales by issuing credits for vehicle sales.

Fully electric cars and trucks would be worth a bigger credit than plug-in hybrid versions, though the government acknowledges that plug-in hybrids will likely remain in demand in rural and northern areas.

The mandate fulfils a 2021 Liberal election promise. It’s the first major set of regulations to come out of an emissions reduction plan the government published in April.

That plan is Canada’s broad road map toward hitting its goal to reduce greenhouse gas emissions across all sectors to a level in 2030 that is 40 to 45 per cent below what it was in 2005.

Passenger vehicles account for half of all road transportation emissions and about one-tenth of Canada’s total emissions across all sectors.

Before Wednesday’s move, Canada already had targets for electric vehicle sales. But they were not enforceable, and the government wasn’t successfully compelling car companies to ramp up the number of electric vehicles available for sale.

The new targets will be nationwide, though some provinces are already ahead of others.

Quebec and British Columbia already have provincial sales mandates. An analysis released last week by the Canadian Climate Institute concluded that the mandates helped both provinces move well out ahead of the rest of the country on electric-vehicle use.

Anna Kanduth, a senior research associate at the institute, said global supply of zero-emission vehicles is still limited, though it is growing quickly.

“Auto manufacturers are largely prioritizing jurisdictions with some type of sales mandate,” she wrote, adding that places with mandates have much higher rates of zero-emission vehicle adoption and more model choice.

B.C. is leading the field in electric-vehicle sales, which account for almost 15 per cent of all new vehicles registered between January and June. Quebec is in second, at 11.4 per cent of registrations.

There is a steep drop off to third-place Ontario, where only 5.5 per cent of new registrations are for electric vehicles. The number is below four per cent in all other provinces.

This report by The Canadian Press was first published Dec. 21, 2022.

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Automotive

Current EV strategy charging ahead to failure

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Dan McTeague  Written By Dan McTeague

For years now I’ve been saying that electric vehicles, and EV mandates, are bad for Canada.

Back in 2020, when the then-CEO of Toyota, Akio Toyoda, voiced his concerns that governments were moving too fast in their push for an all-electric car market when there were other good options available which didn’t require the same multi-billion dollar infrastructure overhaul or increase in electricity generation, I asked why we weren’t listening to a man who knows his own business.

When Europe found itself in an energy crisis in the winter of 2022, and the Swiss government asked its citizens to avoid driving their EVs, even considering an outright ban, to protect their fragile electricity grid, I said that with our already-strained grid we were seeing our future playing out before us in Switzerland and mandates or no, consumers just wouldn’t stand for it.

And more recently, as stories have piled up of EVs’ vulnerability to the cold — “We got a bunch of dead robots out here,” as one frustrated EV owner put it, surrounded by frozen EVs that had run out of juice while waiting for a charge in a cold snap — I’ve asked over and over again, why on earth our government is trying to force the large scale adoption of an automobile technology which functions so poorly in a normal Canadian winter.

I take no pleasure in being proved right, but nearly every day brings about a new story of EVs failing to meet the lofty expectations our leaders have set for them.

  • Recent headlines have trumpeted the difficulties EV drivers are having getting their cars fixed, because so few mechanics know how to work on them.
  • People are finding that the resale value of their EV is falling at a much faster rate than their neighbour’s reliable internal combustion engine vehicle.
  • Rental car companies like Hertz have been taking major losses after over-investing in EVs, that no one wants to rent. Apparently people don’t like the idea of pinning their vacation on a car they might not be able to charge.
  • And major auto manufacturers have been significantly scaling back their annual EV production, despite impending mandates which will force consumers to buy their product in just over a decade.

Even with the generous government subsidies handed to Ford in order to produce made-in-Canada electric SUVs, that company has decided to push their release date for the vehicles back two years — a decision that means layoffs for the majority of the 2,700 workers at the plant, according to the Globe and Mail. GM has followed suit, with recent  reports  claiming that they are “having a second look” at plans to build EV motors at their plant in St. Catherines, Ontario.

Those companies are beginning to accept reality, something various nations around the world have started to do, as well. The U.K., Germany, Italy, and other European countries, as well as the U.S., have had resistance to EV mandates play a big role in their politics lately. The Biden campaign was even forced to issue a statement saying, “There is no ‘EV mandate,’” after Donald Trump predicted to Detroit autoworkers that the White House’s pro-EV policies would put them out of work.

In the face of all of this, the Trudeau government continues to double down, reaffirming mandates and shovelling more and more tax dollars into the EV fire.

They should know better.

And maybe they do.

But maybe the dollars and the promises to their activist friends have just gotten so big that they feel like they can’t change course now.

Or maybe they are just too stubborn to admit that people like me were right all along, that they bet big and they bet wrong. And they can’t say they weren’t warned.

Buckle up.

Dan McTeague is President of Canadians for Affordable Energy

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Economy

Carbon tax costs Canadian economy billions

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano 

This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table.

The Canadian Taxpayers Federation is calling on the federal government to scrap the carbon tax in light of newly released government data showing the tax will cost the Canadian economy about $25 billion in 2030.

“Once again, we see the government’s own data showing what hardworking Canadians already know: the carbon tax costs Canada big time,” said Franco Terrazzano, CTF Federal Director. “The carbon tax makes the necessities of life more expensive and it will cost our economy billions of dollars.

“Prime Minister Justin Trudeau must scrap his carbon tax now.”

The government of Canada released modelling showing the cost of the carbon tax on the Canadian economy Thursday.

“The country’s GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise,”  reports the Globe and Mail.

Canada contributes about 1.5 per cent of global emissions.

Government data shows emissions are going up in Canada. In 2022, the latest year of data, emissions in Canada were 708 megatonnes of CO2, an increase of 9.3 megatonnes from 2021.

The federal carbon tax currently costs 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.

The carbon tax adds about $13 to the cost of filling up a minivan, about $20 to the cost of filling up a pickup truck and about $200 to the cost of filling up a big rig truck with diesel.

Farmers are charged the carbon tax for heating their barns and drying grains with natural gas and propane. The carbon tax will cost Canadian farmers $1 billion by 2030, according to the Parliamentary Budget Officer.

“No matter how many times this government tries to put lipstick on the carbon tax pig, the reality is clear,” said Kris Sims, CTF Alberta Director. “This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table. Trudeau should make life more affordable and improve the Canadian economy by scrapping his carbon tax.”

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