Week 11, March 16: Electric Vehicles
This is one of the 26 segments of Guy Dauncey’s Climate Emergency: A 26-Week Transition Program for Canada. Excerpted by permission.
Our current target is that 10% of total light-duty vehicle sales should be zero-emissions vehicles (ZEV) by 2025, 30% by 2030 and 100% by 2040.
- With this announcement, we are advancing our target such that all light-duty vehicle sales bought in Canada should be zero emissions by 2030. In 2020, many new electric vehicles have a range of 400 kilometres, and it is rare to find an EV driver who is not happy with their purchase. A Bank of America Merrill Lynch study found that over three years the cost of ownership of an EV (Tesla Model 3, Volkswagen ID.3, Audi e-tron, Nissan Leaf, MG ZS) is considerably lower than that of a conventional car. In 2020, driving an electric vehicle 20,000 kilometres a year saves $2000 a year in reduced fuel and maintenance costs at 2019 gas prices, or $40 a week. By 2030, when the carbon tax is $280 per tonne, the savings for an EV owner will be $3,695 a year, or $71 a week.
- Starting in 2030 we will impose an annually increasing Climate Danger Levy on the price of every new gasoline or diesel vehicle, in addition to the carbon tax. We will continue to allow businesses to fully deduct the capital cost of zero-emission vehicles.
- We intend that all medium-duty trucks should be electric by 2035.
- We intend that all land vehicles and industrial equipment of every kind should be zero carbon (electric, hydrogen or synthetic fuel) by 2040.
- We will develop future iZEV incentives for these types of vehicle accordingly, adjusting the target forward or backward according to the market availability of ZEVs.
- We will continue our government’s current iZEV Incentive, which offers Canadians $5,000 off the price of a new ZEV costing less than $45,000, and $2,500 to lease a ZEV for a minimum 48 months.
- We will continue our commitment to provide a 10% rebate on used ZEVs up to a maximum of $2,000. There are two million new vehicle registrations a year in Canada, and the average vehicle has a life of ten years. The average EV may have a life of 25 to 30 years, with battery replacement after 10 to 15 years. (SeeDauncey’s full textfor year-by-year breakdown.) Cost: $1 billion a year averaged over ten years. (#27)
- We will phase out these incentives when the average price of a new ZEV equals the average price of a new mid-sized conventional vehicle, which we expect to happen by 2026 or earlier.
- We will continue to work with California on the stringency of our Low Carbon Fuel Standards in the years leading up to full zero emissions vehicles.
- We will work with Canada’s EV charging infrastructure providers and power utilities to ensure that EV charging capacity is in place along all major road networks, and in Canada’s urban and rural areas. Models: Norway, Los Angeles.
- We will work with Canadian auto manufacturers to maximize the manufacturing of EVs in Canada, using Canadian steel and aluminum.
- We will eliminate all federal taxes on the operation of carshare groups, and make carshare membership fees a tax-deductible expense.