New U.S. tailpipe rules are a turning level on North America’s EV journey—however Canada should nonetheless take the wheel by itself guidelines

May 15, 2023

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TORONTO — Ekta Bibra, senior coverage advisor at Clear Vitality Canada, made the next assertion in response to the U.S.’s proposed new mild obligation automobile requirements:

“With EV gross sales shattering information world wide, it’s clear we’re en path to a brand new electrical age. The brand new proposed rules from the U.S. present that our closest neighbour, and the world’s second-largest auto market, goes all in on this electrical future.

“Certainly, whereas Canada has had stronger EV insurance policies than the U.S. to this point, the proposed U.S. rules are, in some methods, much more bold than Canada’s. And since our rules are at present tied to the U.S., the brand new guidelines would robotically apply right here too.

“The brand new American requirements challenge that 60% of automobiles bought by the top of the last decade can be pure battery-electric, whereas Canada’s lately proposed regulated gross sales targets for zero-emission automobiles embrace plug-in hybrids within the equal 60% gross sales goal. The U.S. guidelines additionally introduce stricter tailpipe emissions requirements on medium-duty industrial automobiles (like vans and pickups)—one thing that Canada has but to implement.

“Whereas it’s encouraging to see a extra unified North American strategy to electrical transportation, it’s vital that Canada continues to implement—and strengthen—its personal rules. Ought to a future U.S. authorities roll again these tailpipe air pollution limits (as occurred throughout the Trump administration), Canada would lose its EV coverage seatbelt. Canada is its personal nation, and it shouldn’t be beholden to voters in one other jurisdiction for its coverage selections, particularly when it might affect Canadians’ entry to cost-saving EVs.

“Canada’s personal proposed guidelines, which deal with EV gross sales fairly than tailpipe emissions, additionally present extra coverage certainty whereas nonetheless providing automakers a spread of pathways to finally reaching 100% EV gross sales in 2035. Analysis has proven that this coverage strategy helps drive down EV sticker costs whereas encouraging carmakers to make a broader vary of EV fashions that can be purchased. Canada should now deal with implementing these rules shortly.

“Rigorous zero-emission automobile insurance policies each north and south of the border are a key part in guaranteeing the marketplace for Canadian-made EVs. Canada’s EV battery provide chain might assist as much as 250,000 jobs by 2030 and add $48 billion to the Canadian economic system yearly.

“Whereas the brand new U.S. guidelines are undoubtedly nice information for potential EV drivers throughout North America, Canada should nonetheless maintain a hand on the wheel to safeguard our cleaner, cost-saving electrical future.”

KEY FACTS

The proposed U.S. guidelines comprise a fleet emissions common commonplace which requires that automakers’ fleets adhere to more and more strict common tailpipe emissions. Yearly, as the foundations turn into extra stringent, automakers might be pressured to promote a larger share of zero-emission automobiles inside their fleet as that might be probably the most cheap approach to meet that yr’s fleet emissions common.
The Environmental Safety Company initiatives that this could be equal to 36% battery-electric gross sales (not together with gross sales of plug-in hybrids) in 2027, 60% in 2030 and 67% in 2032 (when the rules finish). For medium-duty automobiles it’s projected to be 34% by 2030 and 46% by 2032.
Canada’s proposed regulated gross sales targets for zero-emission automobiles would require zero-emission automobiles (together with plug-in hybrids), to make up 60% of car gross sales by 2030 and 100% by 2035.
Transportation makes up 1 / 4 of Canada’s carbon air pollution.
Quebec, B.C., and California all use regulated zero-emission automobile gross sales targets to implement EV gross sales necessities, all en path to 100% ZEV gross sales by 2035. Since California enacted its regulated zero-emission automobile gross sales targets, 15 different states have adopted swimsuit.
A current Clear Vitality Canada ballot indicated that almost all (58%) of Canadians are inclined to purchase an EV for his or her subsequent automotive.
A examine commissioned by Transport Canada discovered that 82% of dealerships didn’t have any ZEVs in inventory in March 2022—and people with inventory had been concentrated in B.C. and Quebec, the 2 provinces with zero-emission automobile mandates.
A current evaluation by Environmental Defence discovered that rules to section out fuel vehicles by 2035 would minimize EV costs by 20% as automakers are pressured to promote extra reasonably priced fashions, as a substitute of simply luxurious EVs, in an effort to meet their targets.
Final yr, Clear Vitality Canada analyzed a variety of common electrical automotive fashions, evaluating their complete possession prices with that of fuel equivalents. With only one exception, the electrical model of each automotive analyzed was cheaper, often considerably so.
There are set to be 60 occasions extra Canadians employed in EV-related jobs in a net-zero 2050 than in 2025, in accordance with a new Clear Vitality Canada report.