Federal Minister of Environment and Climate Change Steven Guilbeault wants to impose a mandate on the sale of zero-emissions vehicles (ZEVs) in Canada in the form of a sales quota for automotive retailers.
Early consultations on this aspect of the 2030 Emissions Reduction Plan (ERP) launched in December, as the government aims to meet its goal of having 100 per cent of new light-duty vehicles sold in Canada be ZEVs by 2035, and at least 50 per cent by 2030.
In an interview with Canadian auto dealer, Huw Williams, Director of Public Affairs for the Canadian Automobile Dealers Association (CADA), said the country is on an aggressive timeframe to make this shift. And with that timeframe comes a few challenges.
“This is going to take, not just a monumental transition from a car dealership perspective—this is also something that involves every manufacturer worldwide, involves a transitioning consumer mentality, and importantly a transition across a whole range of sectors—from electricity providers on the generation side, but also on the utility side to be able to provide that energy in an efficient manner,” said Williams.
He adds that it will also require significant investment from governments and that it is something that cannot happen with the flick of a switch, or with a simple line of legislation.
Williams said governments are working towards the initiative, and that the manufacturing community worldwide is fully engaged in the process to meet those timeframes. “But there’s a recognition that there are some real barriers to make this happen, and we need partnership in order to be able to achieve that,” he said.
Part of that partnership is about ensuring that consumers can plug in their EVs, which at the moment is problematic for many people—including garage orphans living in buildings (such as condo units) where charging is either non-existent or there is a lack of plugins in the facility. The same can be said for public charging areas, particularly in certain areas of Canada’s big cities.
“Those challenges are outside of some of the natural barriers, like size and distance and weather, and a charging infrastructure across the country that is efficient. These things are going to be a big challenge for us,” said Williams. “So that’s the range of the problem.”
Guilbeault already outlined that the federal government wants to have a consultation on what an interim mandate may be or look like, and those consultations are already underway. Williams said more than 160 groups took part in the consultation—groups ranging from the major utilities to the automotive manufacturers and the dealerships, for example.
There is also a “tremendous push” from groups that would classify themselves as environmental groups, said Williams, indicating that these non-governmental environmental groups are of the perspective that the ZEV transition should happen immediately.
“There’s a natural pull that exists between the possible and what is desired,” said Williams. “And we’re actively engaged with the government on that at the moment and taking part in those consultations, both the manufacturers and CADA, which is representing the dealers associations.”
According to Environment and Climate Change Canada, the country’s commitment to addressing climate change includes “billions of dollars” for things like home and commercial building retrofits, investments to speed up decarbonization by large emitters and boost clean technology, pollution pricing, a ZEV sales mandate, investments in “nature-based” climate solutions, and preserving natural spaces.
The consultations were originally set to take place in the fall but were canceled and put in place December 17, making for a tight response timeframe. The consultations stretch to about mid-January.
Williams said the government is clearly moving on this as a priority and that CADA’s message to the government is “yes, this should be a priority, but it has to be done in a way that recognizes some of the realities. It needs to recognize that it’s not as simple as the stroke of a pen, and that it’s an international marketplace as well.”
He said any single jurisdiction today could attempt to shift to 100 per cent electric, but that they would be unable to do so because of the supply.
On the provincial level, Robert Poëti, President and CEO of the CCAQ (La Corporation des concessionnaires automobiles du Québec), which is the Quebec dealers association, said there are already programs and laws that exist, and that the federal government mandated that all new light-duty vehicles sold be zero emission by 2035–which will effectively end the sale of gasoline vehicles in the country by that time.
“I think we have to give the manufacturers time to adapt, but they are doing it even faster than anticipated,” said Poëti, in response to Guilbeault’s potential sales quota. “Hundreds of billions of dollars are being invested by global manufacturers to make electric vehicles available.”
Poëti said putting additional pressure on the OEMs when they are investing hundreds of billions in electric vehicles is like telling them that selling their vehicles in Canada is a bit complicated.
“So they end up here, maybe, with a shortage of vehicles, because they wouldn’t sell their vehicles here anymore. We need to be careful,” said Poëti.
There are already major investments happening in the country where electric vehicles are concerned, particularly in provinces like Quebec and British Columbia. Poëti said they should congratulate Quebecers and Canadians who are promoting electric vehicles.
“(We should) encourage them to buy them instead of, and maybe I’m interpreting it, but instead of threatening the dealers or the manufacturers,” he said.
Poëti requested a meeting with Guilbeault and will not take place in the new year. CADA also remains part of the consultations that will end in January, which leaves the automotive and auto retail industry a short timeframe to plead their case.
