The high price of green virtue

Todayville

Published

4 weeks ago

7 minute read

By Jerome Gessaroli for Inside Policy

Reducing transportation emissions is a worthy goal, but policy must be guided by evidence, not ideology.

In the next few years, the average new vehicle in British Columbia could reach $80,000, not because of inflation, but largely because of provincial and federal climate policy. By forcing zero-emission-vehicle (ZEV) targets faster than the market can afford, both governments risk turning climate ambition into an affordability crisis.

EVs are part of the solution, but mandates that outpace market acceptance risk creating real-world challenges, ranging from cold-weather travel to sparse rural charging to the cost and inconvenience for drivers without home charging. As Victoria and Ottawa review their ZEV policies, the goal is to match ambition with evidence.

Introduced in 2019, BC’s mandate was meant to accelerate electrification and cut emissions from light-duty vehicles. In 2023, however, it became far more stringent, setting the most aggressive ZEV targets in North America. What began as a plan to boost ZEV adoption has now become policy orthodoxy. By 2030, automakers must ensure that 90 per cent of new light-duty vehicles sold in BC are zero-emission, regardless of what consumers want or can afford. The evidence suggests this approach is out of step with market realities.

The province isn’t alone in pursuing EV mandates, but its pace is unmatched. British Columbia, Quebec, and the federal government are the only ones in Canada with such rules. BC’s targets rise much faster than California’s, the jurisdiction that usually sets the bar on green-vehicle policy, though all have the same goal of making every new vehicle zero-emission by 2035.

According to Canadian Black Book, 2025 model EVs are about $17,800 more expensive than gas-powered vehicles. However, ever since Ottawa and BC removed EV purchase incentives, sales have fallen and have not yet recovered. Actual demand in BC sits near 16 per cent of new vehicle sales, well below the 26 per cent mandate for 2026. To close that gap, automakers may have to pay steep penalties or cut back on gas-vehicle sales to meet government goals.

The mandate also allows domestic automakers to meet their targets by purchasing credits from companies, such as Tesla, which hold surplus credits, transferring millions of dollars out of the country simply to comply with provincial rules. But even that workaround is not sustainable. As both federal and provincial mandates tighten, credit supplies will shrink and costs will rise, leaving automakers more likely to limit gas-vehicle sales.

It may be climate policy in intent, but in reality, it acts like a luxury tax on mobility. Higher new-vehicle prices are pushing consumers toward used cars, inflating second-hand prices, and keeping older, higher-emitting vehicles on the road longer. Lower-income and rural households are hit hardest, a perverse outcome for a policy meant to reduce emissions.

Infrastructure is another obstacle. Charging-station expansion and grid upgrades remain far behind what is needed to support mass electrification. Estimates suggest powering BC’s future EV fleet alone could require the electricity output of almost two additional Site C dams by 2040. In rural and northern regions, where distances are long and winters are harsh, drivers are understandably reluctant to switch. Beyond infrastructure, changing market and policy conditions now pose additional risks to Canada’s EV goals.

Major automakers have delayed or cancelled new EV models and battery-plant investments. The United States has scaled back or reversed federal and state EV targets and reoriented subsidies toward domestic manufacturing. These shifts are likely to slow EV model availability and investment across North America, pushing both British Columbia and Ottawa to reconsider how realistic their own targets are in more challenging market conditions.

Meanwhile, many Canadians are feeling the strain of record living costs. Recent polling by Abacus Data and Ipsos shows that most Canadians view rising living costs as the country’s most pressing challenge, with many saying the situation is worsening. In that climate, pressing ahead with aggressive mandates despite affordability concerns appears driven more by green ideology than by evidence. Consumers are not rejecting EVs. They are rejecting unrealistic timelines and unaffordable expectations.

Reducing transportation emissions is a worthy goal, but policy must be guided by evidence, not ideology. When targets become detached from real-world conditions, ideology replaces judgment. Pushing too hard risks backlash that can undo the very progress we are trying to achieve.

Neither British Columbia nor the federal government needs to abandon its clean-transportation objectives, but both need to adjust them. That means setting targets that match realistic adoption rates, as EVs become more affordable and capable, and allowing more flexible compliance based on emissions reductions rather than vehicle type. In simple terms, the goal should be cutting emissions, not forcing people to buy a specific type of car. These steps would align ambition with reality and ensure that environmental progress strengthens, rather than undermines, public trust.

With both Ottawa and Victoria reviewing their EV mandates, their next moves will show whether Canadian climate policy is driven by evidence or by ideology. Adjusting targets to reflect real-world affordability and adoption rates would signal pragmatism and strengthen public trust in the country’s clean-energy transition.

Jerome Gessaroli is a senior fellow at the Macdonald-Laurier Institute and leads the Sound Economic Policy Project at the BC Institute of British Columbia

Up Next

Canada is divided on the drug crisis—so are its doctors

Don't Miss

Carney shrugs off debt problem with more borrowing

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Canada’s EV Mandate Is Running On Empty

Automotive / 48 mins ago

Trump Deals Biden’s EV Dreams A Death Blow

Energy / 5 hours ago

Unceded is uncertain

Automotive

Canada’s EV Mandate Is Running On Empty

Published on December 6, 2025

Todayville

From the Frontier Centre for Public Policy

By Marco Navarro-Genie

At what point does Ottawa admit its EV plan isn’t working?

Electric vehicles produce more pollution than the gas-powered cars they’re replacing.

This revelation, emerging from life-cycle and supply chain audits, exposes the false claim behind Ottawa’s more than $50 billion experiment. A Volvo study found that manufacturing an EV generates 70 per cent more emissions than building a comparable conventional vehicle because battery production is energy-intensive and often powered by coal in countries such as China. Depending on the electricity grid, it can take years or never for an EV to offset that initial carbon debt.

Prime Minister Mark Carney paused the federal electric vehicle (EV) mandate for 2026 due to public pressure and corporate failures while keeping the 2030 and 2035 targets. The mandate requires 20 per cent of new vehicles sold in 2026 to be zero-emission, rising to 60 per cent in 2030 and 100 per cent in 2035. Carney inherited this policy crisis but is reluctant to abandon it.

Industry failures and Trump tariffs forced Ottawa’s hand. Northvolt received $240 million in federal subsidies for a Quebec battery plant before filing for bankruptcy. Lion Electric burned through $100 million before announcing layoffs. Arrival, a U.K.-based electric van and bus manufacturer, collapsed entirely. Stellantis and LG Energy Solution extracted $15 billion for Windsor. Volkswagen secured $13 billion for St. Thomas.

The federal government committed more than $50 billion in subsidies and tax credits to prop up Canada’s EV industry. Ottawa defended these payouts as necessary to match the U.S. Inflation Reduction Act, which offers major incentives for EV and battery manufacturing. That is twice Manitoba’s annual operating budget. Every Manitoban could have had a two-year tax holiday with the public money Ottawa wasted on EVs.

Even with incentives, EVs reached only 15 per cent of new vehicle sales in 2024, far short of the mandated levels for 2026 and 2030. When federal subsidies ended in January 2025, sales collapsed to nine per cent, revealing the true level of consumer demand. Dealer lots overflowed with unsold inventory. EV sales also slowed in the U.S. and Europe in 2024, showing that cooling demand is a broader trend.

As economist Friedrich Hayek observed, “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” Politicians and bureaucrats cannot know what millions of Canadians know about their own needs. When federal ministers mandate which vehicles Canadians must buy and which companies deserve billions, they substitute the judgment of a few hundred officials for the collective wisdom of an entire market.

Bureaucrats draft regulations that determine the vehicles Canadians must purchase years from now, as if they can predict technology and consumer preferences better than markets.

Green ideology provided perfect cover. Invoke a climate emergency and fiscal responsibility vanishes. Question more than $50 billion in subsidies and you are labelled a climate denier. Point out the environmental costs of battery production, and you are accused of spreading misinformation.

History repeatedly teaches that central planning always fails. Soviet five-year plans, Venezuela’s resource nationalization and Britain’s industrial policy failures all show the same pattern. Every attempt to run economies from political offices ends in misallocation, waste and outcomes opposite to those promised. Concentrated political power cannot ever match the intelligence of free markets responding to real prices and constraints.

Markets collect information that no central planner can access. Prices signal scarcity and value. Profits and losses reward accuracy and punish error. When governments override these mechanisms with mandates and subsidies, they impair the information system that enables rational economic decisions.

The EV mandate forced a technological shift and failed. Billions in subsidies went to failing companies. Taxpayers absorbed losses while corporations walked away. Workers lost their jobs.

Canada needs a full repeal of the EV mandate and a retreat from PMO planners directing market decisions. The law must be struck, not paused. The contrived 2030 and 2035 targets must be abandoned.

Markets, not cabinet ministers, must determine what technologies Canadians choose.

Marco Navarro-Genie is vice-president of research at the Frontier Centre for Public Policy and co-author, with Barry Cooper, of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).

Automotive

Trump Deals Biden’s EV Dreams A Death Blow

Published on December 6, 2025

Todayville

From the Daily Caller News Foundation

By David Blackmon

President Donald Trump dealt the dreams of former President Joe Biden for an all-electric fleet of American cars a fatal blow on Thursday by terminating the onerous Corporate Average Fuel Economy (CAFE) standards Biden invoked in 2022 and further tightened in 2024.

“We’re officially terminating Joe Biden’s ridiculously burdensome, horrible actually, CAFE standards, that imposed expensive restrictions… It puts tremendous pressure on upward car prices,” Trump said during a press conference held in the Oval Office Thursday afternoon.

The Biden standards, which cranked down on allowable tailpipe emissions and raised industry-wide average car mileage to a stratospheric 50.4 miles per gallon requirement by 2030, were the centerpiece of his strategy to force American consumers to buy electric vehicles by intentionally forcing up prices for traditional internal combustion models.

Dear Readers:

As a nonprofit, we are dependent on the generosity of our readers.

Please consider making a small donation of any amount here.

Thank you!

That’s right, America: Your government, led by Joe Biden’s autopen and the woke staffers who wielded it, intentionally and with malice aforethought drove up the prices of the gas powered cars you actually want to buy to try to force you to purchase electric models that poll after poll proves most of you don’t want. They did this all in the name of the global climate alarm religion, which far too many U.S. politicians use to justify a vast array of authoritarian actions.

The unbridled hubris involved in even entertaining this concept would have in the past been considered scandalous. Yet, today, it is completely in keeping with one of the central goals of the energy transition movement to drive up the costs of all traditional forms of energy to try to make the subsidized alternatives favored by the Democratic Party – wind, solar, and electric vehicles – competitive in the market. Activists in the climate alarm movement no longer even try to deny this goal – they proudly boast about it.

This was the real enterprise behind Biden’s ridiculous CAFE standards, and it is what President Trump interrupted on Thursday. It was just the latest in a series of body blows Trump and his officials have dealt the U.S. EV industry, one that could well prove fatal to many pure-play electric car companies and force major reallocations of capital budgets inside integrated automakers like Ford, GM, and Stellantis.

Naturally, the climate alarm activist community was outraged. “Trump’s action will feed America’s destructive use of oil, while hamstringing us in the green tech race against … foreign carmakers,” said Dan Becker, Director of the notorious far-left conflict group, the Center for Biological Diversity, according to the Guardian.

But here’s the thing: U.S. consumers don’t want to buy the alternative the climate alarm community and Biden administration were trying to force. Even with the attraction of Biden’s economically ruinous $7,500 per unit IRA subsidies, U.S. car buyers made clear their strong preference for big, full-size, gas-or-diesel-powered pickups and SUVs.

This reality is why Stellantis announced in September it was abandoning plans to introduce a full-size electric pickup to compete with Ford’s F-150 Lightning. Even worse for EV boosters, Ford has already cut back on production of the Lightning model, and is planning to eliminate it entirely soon, according to the Wall Street Journal. These decisions and plans were already underway long before Trump’s decision to rescind the CAFE standards, based on simple consumer demand.

Interestingly, many consumers believe Trump didn’t go far enough on Thursday, and that he should simply eliminate mileage requirements altogether. One commenter to my Substack newsletter writes, “why didn’t they just kill CAFE standards once and for all? From what clause in the Constitution does the federal government have the right to limit what type of car I can buy?…They should have just killed it outright.”

It’s a legitimate question: Why do federal regulators believe they have the right to control consumer behavior in the name of climate alarmism? In light of last year’s decision by the Supreme Court to rescind the Chevron deference – which helped facilitate the massive expansion of the federal bureaucracy for 40 long years – it’s a question that could be litigated in the months and years to come.

Joe Biden’s EV dreams are dead now, but that doesn’t mean the situation can’t possibly get even worse for the EV industry in America. Stay tuned.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.