New PBO report underscores the significance of bringing competitively priced, inexpensive EVs to the Canadian market

August 30, 2024

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OTTAWA — Joanna Kyriazis, director of public affairs at Clear Power Canada, made the next assertion in response to the PBO’s new evaluation of Canada’s Electrical Car Availability Normal:

“The Parliamentary Funds Officer’s report highlights the elemental significance of Canada’s Electrical Car Availability Normal in constructing out a public charging community and driving EV costs down.

“The report makes it clear that the EV Availability Normal would require automakers to deliver extra inexpensive electrical autos to market in an effort to meet its necessities. Just like the fossil gas sector, Canada’s auto business has a duty to do its half in combating its vital contribution to local weather change—on this case by constructing competitively priced EVs for each sort of driver. What’s extra, the usual affords appreciable flexibility to assist automakers cost-effectively comply.

“EVs represented 24% of all automobile gross sales in Europe in 2023 and this spring hit 44% in China, in comparison with simply 12% in Canada. Europeans can select from a minimum of 11 totally different electrical choices with a purchase order value of lower than C$45,000, in comparison with simply two in Canada. Automakers can do higher.

“The PBO’s evaluation comes the identical week because the federal authorities introduced 100% tariffs on Chinese language-made EVs, which can end in fewer inexpensive electrical choices for Canadians and fewer market incentive for North American automakers to make cheaper EVs. Consequently, the EV gross sales necessities in the usual—together with different authorities funding and incentives—are extra essential than ever in making certain Canadians can entry the cost-savings of going electrical.

“Certainly, the report accurately acknowledges that EVs are the extra inexpensive choice for drivers over a whole-ownership interval however that cheaper fashions should be delivered to Canadians. In spite of everything, greater upfront prices are a barrier for a lot of cash-strapped households, even when they acknowledge an EV would save them cash over time.”

KEY FACTS

The PBO estimates that to realize gross sales targets, the possession price of EVs relative to fuel autos should decline by 31% by 2030. The report highlights the function that carmakers’ pricing methods and know-how developments might play in driving down EV costs, along with additional authorities incentives (the evaluation assumes federal EV buy incentives are phased out in 2025-2026).
Reaching the zero-emissions automobile gross sales targets beneath the EV Availability Normal would enhance the availability of Degree 2 and Degree 3 (quick) charging ports by 33,900 and 4,700 items, respectively, above baseline ranges in 2030, because the non-public sector invests to fulfill the demand of latest EVs. This construct out of charging infrastructure would considerably shut the hole between baseline expectations and the variety of chargers a current Pure Assets Canada commissioned evaluation says Canada wants. Particularly, beneath the EV Availability Normal:
- the variety of public Degree 2 charging ports will enhance from 20,700 in 2023 to 122,810 in 2030 (in comparison with the 132,900 ports Canada wants);
- and the variety of fast-charger ports will enhance from 4,640 in 2023 to twenty,330 in 2030 (in comparison with the 22,000 ports Canada wants).
Precise non-public sector charging investments may very well be even greater, because the PBO evaluation doesn’t embody a flexibility mechanism within the EV Availability Normal that permits carmakers to spend money on charging on to earn credit towards their EV gross sales targets.
Notably, the PBO evaluation doesn’t embody Canada’s seemingly adoption of the U.S. Environmental Safety Company’s tailpipe emission requirements in its baseline situation, which can even play a key function in driving EV provide (if not rolled again by a re-elected President Trump).