Environment Committee on Nov. 2nd, 2020

[Joanna Kyriazis]

If we look at the two provinces that have ZEV standards in Canada, we see they are home to 76% of all electric vehicles available for sale. That is a huge difference and, proportionate to the population in those provinces, a much greater supply than should be there. If we look at the U.S., we see that California and 10 other U.S. states have a zero-emission vehicle standard in place. ZEV registrations are four and a half times higher in those states than in other states, even if those other states have electric vehicle targets and other policies in place. Zero-emission vehicle standards work, and—

[Raj Saini, Liberal, Kitchener Centre, ON]

Can you tell me what other countries they work in internationally?

[Joanna Kyriazis]

China has its own version of a zero-emission vehicle standard. Obviously, China dominates in terms of EVs. It's attracted 50% of global EV investment, and it accounts for 50% of EV sales.

[Raj Saini, Liberal, Kitchener Centre, ON]

I don't have a lot of time. Just from your commentary, perhaps you could help me frame this. When a country imposes a ZEV standard, the sales go up and the supply goes up. Is that true?

[Joanna Kyriazis]

Yes.

[Raj Saini, Liberal, Kitchener Centre, ON]

Okay.

How about research? How important is research in also increasing supply and bringing some sort of vigour to the market? Does that help also?

[Joanna Kyriazis]

What sort of research?

[Raj Saini, Liberal, Kitchener Centre, ON]

It's any kind of research, the whole thing involved in a car: R and D, battery, cars, components, whatever.

[Joanna Kyriazis]

I see. Yes. So—

[Raj Saini, Liberal, Kitchener Centre, ON]

Have you seen that also? When we invest in R and D, do you also see that increasing supply? We have the ability to increase our own efficiency and present our own products to the market.

[Joanna Kyriazis]

Absolutely. Anything that can help bring down the cost of an electric vehicle is going to help, but there's been a lot of investment in R and D, and now it's just ready to bring those existing EV models to Canada.

[Raj Saini, Liberal, Kitchener Centre, ON]

No problem. Thank you very much.

I have a question for Mr. Kingston. Mr. Kingston, you mentioned a lot of R and D in the tens of billions of dollars. Can you tell me where that's happening?

[Brian Kingston]

Sure. We have two good examples of assembly investments being made in Canada just recently with respect to the Oakville retooling—

[Raj Saini, Liberal, Kitchener Centre, ON]

Which is fantastic.... Does it represent tens of billions of dollars, though?

[Brian Kingston]

No. Those investments that I now mentioned are globally.

[Raj Saini, Liberal, Kitchener Centre, ON]

You've been a bit cautious, if I can use the term lightly, in talking about supply. I think everybody's trying to come at you with a different angle. Let me try a different angle here.

Last year global automakers decided to pour $300 billion into the electric vehicle market. Fifty per cent of that money went to China, and the global automakers came from Germany, China, the U.S., South Korea, Japan, France, India, the U.K. and Sweden. What do they know that we don't?

[Brian Kingston]

The Chinese government has put in place all sorts of programs and policies to ensure that consumers purchase vehicles, including incentives, but not—

[Raj Saini, Liberal, Kitchener Centre, ON]

But there are ZEV standards in China, too, that facilitate the sales. If you're going to invest in a country and you're going to produce in that country, there has to be some guarantee you'll have sales in that country.

[Brian Kingston]

I would also note that China is the largest vehicle market in the world, so it doesn't really compare with—

[Raj Saini, Liberal, Kitchener Centre, ON]

Can you agree with me that they do have ZEV standards?

[Brian Kingston]

I'm actually not aware of how they manage on that particular basis—

[Raj Saini, Liberal, Kitchener Centre, ON]

They do. They do have ZEV standards, so obviously if the ZEV standards were here in Canada, and companies knew that they had to sell a certain percentage of their ZEV cars here, do you not think that would increase the supply automatically?

[Brian Kingston]

No, I would challenge that because—

[Raj Saini, Liberal, Kitchener Centre, ON]

But $300 billion is going to China. Fifty per cent of that money is going to China, and the global automakers are from Germany, China, the U.S., South Korea, Japan, France, India, the U.K., and Sweden. Why would they be going to China?

[Brian Kingston]

They go to China like any other market that a business operates in where they think they can sell a vehicle. You sell the vehicle where the price point matches the demand and the median income—