QUESTION PERIOD — Transport
Zero-Emission Vehicles
May 23, 2024
Senator Gold, my question is on zero‑emission vehicles.
The federal government is all in on reducing the number of greenhouse gas-emitting vehicles on our roads with an ambitious zero-emitting vehicle, or ZEV, mandate. The goal is to have 100% ZEV sales by 2035 for light-duty vehicles.
We know that Canada is investing heavily in the electric vehicle supply chain, but what analysis has the government conducted to assess the projected gap between demand and supply of ZEVs and the likelihood of possible market disruptions in the sector?
A recent paper from the C.D. Howe Institute suggested that there is a slim chance we meet the target of 1.5 million ZEV sales in 2035. Would the government consider adjusting its plan to include hybrid or lower-emitting options and not exclusively ZEVs?
Thank you for the question.
Colleagues, as you are aware, under the new Electric Vehicle Availability Standard, auto manufacturers and importers must meet annual zero-emission vehicle, or ZEV, regulated sales targets. Targets begin for the 2026 model year, with the requirement that at least 20% of new light-duty vehicles offered for sale in that year be ZEVs. The requirements increase annually to 60% by 2030 and 100% for 2035. Given the average age of a vehicle is 15 years, putting into place a 100% ZEV sales target by 2035 will help end the use of polluting light-duty vehicles by 2050.
To your question, senator, I’m not aware of any plans to change these requirements.
Thank you.
Senator Gold, Canadians support the need to reduce emissions, especially those from the transportation sector, which represents about 25% of all emissions in Canada. Beyond all the investments and announcements, what comprehensive, full picture assessment has the government done to estimate the complete cost associated with its ZEV mandate? We need to invest in the supply chain, in a cross-country charging station system and on and on — billions of dollars.
Thank you for the question. Though I don’t have a comprehensive cost estimate for you at this time, what we do know is that the cost of not acting to reduce our emissions and combat climate change is very real. Climate change has already absorbed a significant financial cost, with over 73% of the Disaster Financial Assistance Arrangements funds being spent in the last decade. That amounts to billions of dollars.
