Energy Minister Wants Canada-Wide EV Sales Quota Mandate
by David Wieser
Canada aims to become zero-emission by 2050 and Federal Environment Minister, Steven Guilbeault, has started putting a plan in place. Currently, road transportation accounts for 20% of total greenhouse gases emitted in Canada. According to the plan, the federal government wants 50% of all new vehicles sold by 2030 to be zero-emission and 100% by 2035.
Only 3% of cars registered in Canada are EV or zero-emission. The Canada-wide EV sales quote mandate will come into effect by late 2022 or early 2023. Guilbeault has already held several consultation sessions for expert advice on the mandate, how it will affect the Canadian auto industry, and whether there should be an interim goal before 2030.
Provincial sales quota mandate is working wonders
Quebec implemented the EV sales quota mandate in 2018 and British Columbia introduced it in 2020. Both provinces have seen a drastic increase of electric cars sold compared to the rest of the nation. Three out of four new EVs purchased in Canada were in Quebec and British Columbia in 2020. They also offer rebates to incentivise EV sales. According to the mandate, carmakers have to pay $5,000 for every car they aren’t able to sell from their quota.
Seeing the success, Yukon, Northwest Territories, and all four Atlantic provinces have introduced EV rebates in the last 18 months. Sales in Ontario went considerably down after the provincial government stopped the EV rebate. Before 2018, 19% of national sales came from Ontario. Waiting for auto deliveries has been the worst amidst the global supply chain crisis.
Becoming a leader in EV sales
Whether Canada implements the mandate or not, EV sales will continue to rise but won’t benefit the federal government. Norway’s EV rebates have made the country a leader in global sales. In 2020, 75% of cars sold in Norway were electric vehicles. Many European Union countries are increasing their rebates to make EVs more affordable. Germany recently passed a law that requires every gas station to have an EV charging station.
Omar Alghabra, Canada’s transportation minister, said that introducing the mandate will not only change consumer behaviour but also the supply chain system and rules and regulations in the auto industry.
Another critical aspect is preparing car dealerships. They will need EV charging stations and train staff on sales and maintenance. While introducing a mandate will help Canada lower greenhouse gases emission, dealerships should be given enough time to make changes and also switch their pricing model to continue profiting from the sales.
Thinking of buying an electric vehicle? Installing a wall charger at home takes away the pressure of driving up to a public EV charging station. Plug in at night and wake up to a fully-charged car in the morning.
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