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The mandate requires at least 20 percent of new vehicles sold to be fully electric or plug-in hybrids by 2026, 60 percent by 2030, and 100 percent by 2035.
Conservative Leader Pierre Poilievre rises during Question Period in Ottawa on Oct. 20, 2023. (The Canadian Press/Adrian Wyld)
By Matthew Horwood
Conservative Leader Pierre Poilievre says his government would repeal electric vehicle (EV) mandates, following Ottawa's announcement on Dec. 19 that it would require all new vehicles sold in Canada to be zero-emission by 2035.
“The command and control, draconian approach of Justin Trudeau is going to be extremely expensive, particularly for low-income families,” Mr. Poilievre said on the radio program On Point With Alex Pierson, according to Blacklock's Reporter.
“They have no idea how people are going to pay for it.”
When asked by Ms. Pierson if he would keep the regulations in place, Mr. Poilievre said, “No, because this is a tax on the poor."
The federal government's new plan will require Canadian vehicle manufacturers to ensure at least one-fifth of the vehicles they sell in 2026 are fully electric or plug-in hybrids, with the number rising to three-fifths by 2030, and then to 100 percent by 2035.
Environment Minister Steven Guilbeault described the government's strategy on EVs as "skating to where the puck is going." Mr. Poilievre argued that the government's reliance on mandates to grow the EV market share shows that they are not affordable "except for the very wealthy."
“What is going to happen is working-class people—that waitress who needs to buy that Toyota Corolla or Honda Civic to get to her job or the barber who needs to buy a modest gas-powered sedan or the working-class guy who needs a pick-up truck—is going to be forced to pay $20,000 or $30,000 more for an electric version that may or may not work in cold weather and driving long distances,” Mr. Poilievre said.
The Conservative leader said he preferred "smart regulations" that would improve fuel efficiency gradually over the course of several years.
"That will save money for consumers while protecting the environment and over time we get to a point where we have close to zero emissions in our automobiles through various types of technology,” he said.
'The Price Is Coming Down'
Mr. Guilbeault told reporters in Toronto on Dec. 19 that he expected “by the end of the decade at the latest the purchase price of gas-powered and electric cars will be about the same.”
When asked what would happen if electric vehicles fail to reach price parity with gas vehicles by 2035, Mr. Guilbeault replied that "the price is coming down."
“Why should manufacturers buy into this program if there really is no guarantee the program will survive past the next election?” asked a reporter. “The only two guarantees are taxes and death,” replied Mr. Guilbeault.
Ottawa published its final regulations on the EV mandate on Dec. 20. The regulations include a Regulatory Impact Analysis Statement detailing costs.
"The Amendments are estimated to have incremental ZEV [zero emission vehicle] and home charger costs of $54.1 billion from 2024 to 2050 for consumers who switch to ZEVs in response to the Amendments," the government's analysis says.
"These same consumers are expected to realize $36.7 billion in net energy savings over the same time period. The Amendments are also estimated to result in cumulative GHG emission reductions of 362 megatonnes (Mt), valued at $96.1 billion in avoided global damages. These GHG emission reductions will help Canada meet its international GHG emission reduction commitments for 2030 and 2050. The Amendments are thus estimated to have total benefits of $132.8 billion, and net benefits of $78.6 billion."
A 2020 report "The Road Ahead: Encouraging The Production And Purchase Of Zero Emission Vehicles In Canada" found that the costs of electrics were prohibitive. The committee cited pre-pandemic Toyota Canada figures, which showed that EVs cost an average of $56,000 before taxpayers’ rebates, compared with $28,000 for a conventional sedan.
Interest in EVs has declined in Canada in 2023, according to a recent report by AutoTrader, which found only 56 percent of non-EV owners expressing an intent to purchase them, down from 68 percent in 2022. The report attributed this to fluctuating gas prices as higher prices tend to increase EV interest.
Ottawa has made substantial investments in electric vehicle battery factories in the past year, including $13.2 billion in subsidies to Volkswagen’s battery cell plant in St. Thomas, Ont., and partnering with the Ontario government to give a combined $15 billion in subsidies to Stellantis-LG Energy Solution to build an EV battery plant in Windsor, Ont"
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