OTTAWA — Joanna Kyriazis, director of public affairs at Clean Energy Canada, made the following statement in response to the PBO’s new analysis of Canada’s Electric Vehicle Availability Standard:
“The Parliamentary Budget Officer’s report highlights the fundamental importance of Canada’s Electric Vehicle Availability Standard in building out a public charging network and driving EV prices down.
“The report makes it clear that the EV Availability Standard will require automakers to bring more affordable electric vehicles to market in order to meet its requirements. Like the fossil fuel sector, Canada’s auto industry has a responsibility to do its part in combating its significant contribution to climate change—in this case by building competitively priced EVs for every type of driver. What’s more, the standard offers considerable flexibility to help automakers cost-effectively comply.
“EVs represented 24% of all vehicle sales in Europe in 2023 and this spring hit 44% in China, compared to just 12% in Canada. Europeans can choose from no less than 11 different electric options with a purchase price of less than C$45,000, compared to just two in Canada. Automakers can do better.
“The PBO’s analysis comes the same week as the federal government announced 100% tariffs on Chinese-made EVs, which will result in fewer affordable electric options for Canadians and less market incentive for North American automakers to make cheaper EVs. As a result, the EV sales requirements in the standard—along with other government funding and incentives—are more important than ever in ensuring Canadians can access the cost-savings of going electric.
“Indeed, the report correctly recognizes that EVs are the more affordable option for drivers over a whole-ownership period but that cheaper models must be delivered to Canadians. After all, higher upfront costs are a barrier for many cash-strapped families, even if they recognize an EV would save them money over time.”
KEY FACTS
- The PBO estimates that to achieve sales targets, the ownership cost of EVs relative to gas vehicles must decline by 31% by 2030. The report highlights the role that carmakers’ pricing strategies and technology advancements could play in driving down EV prices, in addition to further government incentives (the analysis assumes federal EV purchase incentives are phased out in 2025-2026).
- Achieving the zero-emissions vehicle sales targets under the EV Availability Standard would increase the supply of Level 2 and Level 3 (fast) charging ports by 33,900 and 4,700 units, respectively, above baseline levels in 2030, as the private sector invests to meet the demand of new EVs. This build out of charging infrastructure would significantly close the gap between baseline expectations and the number of chargers a recent Natural Resources Canada commissioned analysis says Canada needs. Specifically, under the EV Availability Standard:
- the number of public Level 2 charging ports will increase from 20,700 in 2023 to 122,810 in 2030 (compared to the 132,900 ports Canada needs);
- and the number of fast-charger ports will increase from 4,640 in 2023 to 20,330 in 2030 (compared to the 22,000 ports Canada needs).
- Actual private sector charging investments could be even higher, as the PBO analysis does not include a flexibility mechanism in the EV Availability Standard that allows carmakers to invest in charging directly to earn credits toward their EV sales targets.
- Notably, the PBO analysis does not include Canada’s likely adoption of the U.S. Environmental Protection Agency’s tailpipe emission standards in its baseline scenario, which will also play a key role in driving EV supply (if not rolled back by a re-elected President Trump).
RESOURCES
Op-ed | In the battle over Chinese EVs, Canadian families are collateral damage
Statement | “Canada’s approach to EV tariffs undermines affordability and our climate”
Report | The Scenic Route
Report | A Clean Bill
