Thank you, Mr. Chair.
Good morning, committee members. My name is Blandine Sebileau, and I am a sustainable mobility analyst at Équiterre.
Équiterre has been supporting both the Government of Quebec's zero-emission vehicle standard and the Government of Canada's electric vehicle availability standard. We have contributed to the development of both policies through continuous feedback.
Since 2018, Équiterre has also been leading a large-scale awareness campaign, Roulons électrique, to inform and educate Quebeckers as well as organizations about EVs.
This awareness campaign was put together by environmental and electrification partners as well as Quebec dealers. For six years, we ran advertising campaigns and had boots on the ground in every region, including at events such as auto shows, to talk to people and debunk false beliefs about electric vehicles.
According to a survey we conducted last year, over 90% of electric vehicle owners do not want to go back to a gas-powered vehicle. Once you try an EV, there's no going back.
Thanks to the zero-emission vehicle standard adopted in 2018, one in three new vehicles sold in Quebec last year was electric. That's more than 30% of sales, and we're nearly two years ahead of Quebec's targets.
The ingredients for success are as follows. First, the regulations are stable. Yes, they are restrictive, but they have many flexible elements intended to absorb economic instability. Second, the financial incentives decline over time. Third, we have an electric charging strategy. Fourth, we've conducted extensive awareness campaigns.
In Canada, sales have increased significantly since the adoption of the EV availability standard.
According to a study conducted for Équiterre and its partners by Jonn Axsen at Simon Fraser University, this standard is the most effective policy for reducing greenhouse gas emissions from light-duty vehicles. The proliferation of SUVs and light-duty trucks has cancelled out 80% of the savings achieved with engine energy efficiency. The standard will also reduce the cost of electric vehicles by 20%, while allowing the industry to increase its profits.
How did we get to the point of challenging regulations that are the result of years of work, thought and consultations in which the industry itself took part?
Let's not forget that it was our neighbours who sparked this crisis by imposing tariffs on their industry, on their own companies that do business in Canada. They penalized the entire economy and hindered Canadians' financial capacity.
We're here thinking about how to be more flexible for the industry, while penalizing electric vehicle manufacturers and the Canadian dealers who depend on them, in Quebec and elsewhere. The trade war gave the Canadian auto industry an opportunity to improve a strategy that has been around since the 1970s.
The very real decline in electric vehicle sales is the result of political uncertainty, a sudden withdrawal of federal and provincial incentives, and concerted industry messaging designed to slow the transition and preserve an antiquated technology. However, these factors are cyclical and temporary; global, economic and technological trends clearly remain in favour of electrification. It would be a mistake to confuse this temporary and artificial situation with a long-term trend.
The EV availability standard already includes a significant degree of flexibility. For example, an automaker that has not met its sales targets has three years to make up that shortfall. Another option is to invest in charging infrastructure or sell plug-in hybrid vehicles instead of electric vehicles. These elements were designed specifically to help them weather a turbulent market.
If additional flexibility is needed, we recommend that affordable electric vehicle sales be eligible for additional credits. We also recommend reintroducing targeted and unique incentives for low-income households. Lastly, we recommend investing in large-scale education and awareness programs.
The EV availability standard is an effective policy. It is flexible, robust and designed to absorb market shocks. We must not backslide. We need to clearly signal stability: Canada is not giving up on an electric future; it will continue to invest in building this new industry in Canada. Canada is staying the course and weathering economic turbulence thanks to stable policies that give the sector predictability.
Thank you for your attention.