Evidence of meeting #16 for Environment and Sustainable Development in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was evas.
A recording is available from Parliament.
Senior Climate Policy Manager, The Atmospheric Fund
The key points are education, incentives and support for consumers, as well as robust and intentional charging infrastructure deployment. Do those four things, and you get higher adoption rates.
A key point, too, is that as we've learned more and more about the impacts of this, I think it's key for Canada to factor in the health impacts, which weren't a factor in the original RIAS for the original Canada Gazette process but which we would like to see included as a factor this time around.
Liberal
Will Greaves Liberal Victoria, BC
Thank you.
If either of your colleagues would like to respond, please go ahead.
Sustainable mobility analyst, Équiterre
One fact that I could share with you is that they have about four times more charging infrastructure in Norway than we have in Canada. That's based on the number of charging stations and public stations by 50 kilometres of highway roads.
Liberal
Will Greaves Liberal Victoria, BC
Would it be fair to say that one of the reasons that Norway has been so successful in this regard is also that it's maintained consistency in its policy approach and that it hasn't seen this yo-yo swinging back and forth that actively serves, of course, to undermine the very intent of these kinds of incentives and these kinds of programs?
Director of Standards and Government Affairs, Electro-Federation Canada
Absolutely, yes.
Director of Standards and Government Affairs, Electro-Federation Canada
I think it's really important that we all row in a similar direction. I think the elephant in the room here is that we have car companies that are actively lobbying against EVs right now. We want car companies to be successful. We have a very educated workforce here in Canada, but we have to figure out how to all be successful together. All boats can rise.
We have to figure out where our competitive edge is. China is investing significantly—billions and billions of dollars—and that is why we are not able to compete. We need to figure out where we can compete, and we need to do it as a country. The more we fight amongst each other, the less we succeed as a whole.
Liberal
Will Greaves Liberal Victoria, BC
Thank you.
I'd like to follow up on the discussion about sources of information and the quality of information that circulates around this issue. It has been raised this morning, and in fact aspersions have been raised about potential motivations of these witnesses based on the ways their organizations are funded.
I'd like to invite you to respond to that, in terms of whether or not you feel that's a valid criticism to make of your organizations and your representation today.
Also, could you speak to where the sources of this misinformation are? Whether it's purposeful or whether it's unintentionally or sloppily inaccurate, where is that information coming from that has led some Canadians to be, for example, under the misimpression that it would be a ban on all gasoline-powered vehicles that would go into effect, rather than a standard for new vehicles to meet a certain rate of EV adoption? That seems to be a critical point that is widely and indeed perhaps actively disseminated.
Senior Climate Policy Manager, The Atmospheric Fund
I could go first.
TAF is actually incorporated under provincial statute. It also has an agreement with the City of Toronto. We work off an endowment model. We invest into the market with expected rates of return, and we operate off that return on investment for our operating costs. That is the quick version of that.
In terms of the misinformation, I think it's concerning, especially given that sometimes there's a narrative of, “Oh, just let the industry decide.” However, when industry has been given voluntary metrics, they have failed to meet them, consistently, in every scenario. Particularly in California, with CARB, they never achieve what they say they will. I've never met an industry that likes more regulations.
Director of Standards and Government Affairs, Electro-Federation Canada
I think it's healthy to question people's intentions. I think it's healthy to question where my funding comes from. I think that's a healthy thing to do.
I think that if you want to win, you have to look at the facts. If you want to compete in a world that is electrifying, look around the world. Why is China pumping huge money into electrification? Is it because they're dumb? No. They're very smart. They know where they're going. They know where the puck is going, and they're skating to it.
Go ahead; do your own research, but the facts are the facts.
Liberal
The Chair Liberal Angelo Iacono
Thank you very much.
I would like to thank the witnesses for their testimony today.
The witnesses are now excused, and the meeting will briefly suspend while we prepare the next panel.
Liberal
The Chair Liberal Angelo Iacono
I'm resuming the meeting.
The committee is resuming its study on the electric vehicle availability standard.
This afternoon, the committee will be meeting with Sébastien Côté, chairman of the board of directors at the Association des véhicules électriques du Québec.
Welcome.
We also have Global Automakers of Canada and Mr. David Adams, president. Welcome.
From Propulsion Québec, we have Stéphane Pascalon, senior project manager.
Welcome.
Each speaker has five minutes for their opening remarks. When I raise this card, that lets you know that you have one minute left. If you see the back of the card, you have to finish your sentence.
Mr. Côté, you have the floor for five minutes.
Sébastien Côté Chairman of the Board of Directors, Association des véhicules électriques du Québec
Mr. Chair, members of the committee, ladies and gentlemen, good afternoon.
My name is Sébastien Côté. I am pleased to be here today as chairman of the Association des véhicules électriques du Québec, or AVEC.
For 12 years, AVEC has been a non-profit organization whose mission is to support and promote electromobility in Quebec—whether through training, education or representation—thanks to the expertise of our employees and volunteers. Our vision is both simple and ambitious. We want to be the gold standard for information and education on electromobility in Quebec for Quebec consumers.
Our role is to give consumers objective information on electric vehicles, demystify the technology and the real costs of use, assist future buyers through experienced volunteers and support the transition by offering objective advice and using practices based on real user experience and reliable data. It's important to note that AVEC isn't an activist organization but a consumer organization dedicated to consumers.
That said, why is it important to maintain the electric vehicle availability standard? AVEC is based on two important principles: accessibility and affordability. I will make my case in four points.
First, electric vehicles have to become a real buying option for households. According to Statistics Canada, zero-emission vehicles, or ZEVs, accounted for 13.8% of all new vehicle sales in the country in 2024. In the second quarter of 2025, that percentage dropped to 9.2%. According to the same source, as at June of this year, only 7.9% of vehicles sold were ZEVs. In other words, the Canadian market is slowing down.
Why is that?
First, it's slowing down because supply is no longer as strong as it is elsewhere in the world. Without ZEV standards, Canada becomes a non-priority market for manufacturers, which means fewer models, slower deliveries and higher prices. A clear standard makes it possible to force the industry to offer the same vehicles here as in Europe or California. Canada has to remain in that group to ensure a modern and competitive market for Canadians. When manufacturers are forced to deliver vehicles, prices drop, and there are more choices, so the consumer comes out ahead. It's a win for consumers.
Second, electric vehicles are economically beneficial for consumers when the full life cycle is taken into account. For example, the total cost of owning a 2022 electric Kona was about $50,000 over eight years, compared with about $60,000 for the gas version. Those $10,000 in savings are due to significantly lower energy costs. For their part, Quebec consumers benefit from low-cost hydroelectricity and make substantial savings as a result. Driving 100 km in an electric car costs $2 to $3 if you charge the battery at home, while it costs $10 to $15 for a gas-powered car.
Third, Canada has to catch up with, or at least not fall further behind, countries that are doing well. Quebec is often compared to Norway. This is not a pipe dream. In that cold Nordic country with a number of rural regions, sales for new all-electric vehicles are now over 80%, whereas in Canada, the sales are peaking at 14% in 2025. What are the differences between Canada and Norway? Norway has implemented a clear policy, strict regulations and a stable vision. What's the outcome? There are more models, and those models cost less and are available more quickly. Without a standard, Canada would become a country where the industry liquidates its heat engine models while it sells its electric models en masse elsewhere.
Fourth, the ZEV standard enables an orderly transition that protects the economy, the workforce and charging infrastructure. If there isn't a predictable framework, then services, manufacturing and private investments in charging slow down, which directly harms consumers; small or medium-sized businesses, or SMEs; and workers. The standard sends a clear signal of stability to the industry. Charging companies can plan their activities; electricians can be trained; manufacturers can invest; SMEs can innovate; and municipalities and condominiums can gradually adapt. Conversely, a market without a standard becomes chaotic and experiences alternating surpluses and shortages, inconsistent investments and infrastructure that moves in fits and starts. A poorly managed transition comes at a high cost, while a planned transition like the one enabled by the ZEV standard reduces risks and maximizes economic benefits.
In closing, AVEC's mission is simple. We help Canadians understand and choose the electric vehicles that meet their needs. The ZEV standard is not a constraint; it ensures access to affordable models that are available here, not just elsewhere.
Liberal
The Chair Liberal Angelo Iacono
Thank you, Mr. Côté.
The floor is yours for five minutes, Mr. Adams.
David Adams President, Global Automakers of Canada
Thank you, Mr. Chair.
Thank you, members of the committee, for the opportunity to speak to you today on behalf of the 16 member companies of the Global Automakers of Canada.
The Global Automakers of Canada is a national trade association representing the Canadian interests of 16 of the world's most significant automakers. Our members are collectively responsible for more than 62% of the sales in Canada, and our two manufacturing members, Toyota and Honda, are Canada's largest and second-largest vehicle producers, representing, through the end of September, 75.5% of Canadian light-duty vehicle production. Additionally, GAC member Volkswagen and their partner PowerCo remain in the process of building up the $7-billion factory in St. Thomas, Ontario, which is slated to employ up to 3,000 people directly.
Importantly, the members directly and indirectly employ more than 216,000 people, contribute almost $25 billion to Canada's GDP and generate more than $10.5 billion in government revenues.
With respect to electric vehicles, GAC members have been at the forefront of their introduction into the Canadian marketplace, with the Nissan LEAF and the Mitsubishi i-MiEV being introduced in Canada in 2011. Since then, GAC members have gone on to make 63% of the 120 model variants of ZEVs available in Canada, with more to come.
I want to be clear at the outset that the members of the GAC are fully committed to decarbonizing their products. Our challenge with the government has always been the tools deployed to attempt to drive that decarbonization and the time frame over which that decarbonization should take place.
The EVAS is a technology-specific tool. The rules, as currently constructed under the EVAS, establish targets that are not achievable by the entire industry. We believe that both industry and government want achievable, durable regulatory certainty. To that end, we appreciated the government's response to pause the application of the EVAS for the 2026 model year.
We want to offer additional specific recommendations.
First, the review should be extended beyond the initial 60-day period in order to develop realistic regulation for automakers that keeps Canada competitive with Europe and the United States. We currently do not know what the regulatory environments will be in these jurisdictions, and we need to know that in order to develop a credible and competitive climate policy.
Second, we believe the government should pause the application of the EVAS for the 2027 and 2028 model years as well, for which our members are currently finalizing product planning without knowing what the regulations will be moving forward. This additional pause could be undertaken while still incentivizing automakers with early action credits as they continue to bring zero-emission vehicles to market.
Third, the membership of the Global Automakers of Canada is diverse, with smaller and larger manufacturers. Some have full product lineups, while others have limited product lineups. If EVAS is to remain, it must be flexible, and maximum flexibility is required. In our view, such flexibility would contemplate providing automakers with the option of complying with either GHG emissions regulations or a revised, achievable ZEV mandate. Under such a scenario, if a company met the provisions of one regulation, it would be deemed to have met the provisions of the other. This approach would assist industry by allowing each company to adopt the regulatory framework that would work best for that company's needs while ensuring that the goal of emissions reduction is achieved. This flexibility is key, especially with the current supply chain disruptions and the unprecedented tariff situation, which have put a strain on companies' financial liquidity. Importantly, such flexibility would avoid product constraint for consumers and retain maximum choice.
Fourth, British Columbia's and Quebec's respective ZEV mandates are a significant internal trade barrier for automakers in Canada. They distort the internal market and present compliance liabilities for automakers. The Government of Canada must work with both jurisdictions to ensure alignment with the federal government's policy approach. At the very least, it should secure agreement from both provinces for a “deemed to comply” clause within their regulations, which recognizes EVAS compliance as an effective compliance with their own provincial mandate.
Finally, the collapse of consumer demand for ZEVs demonstrates that the government cannot reasonably set targets for ZEV adoption without complementary and established demand-side policies, such as addressing price parity for consumers and supporting access to reliable and affordable charging infrastructure.
At the end of the day, if we're not crystal clear on the goal of the regulation, it's very difficult to know if we have achieved it.
The current situation is that we have more ZEV models available than ever before. What the industry doesn’t have is customers, or at least not enough of them to meet the regulatory targets for next year. What customers don’t have are the incentives that were put in place to encourage them to purchase ZEVs.
Liberal
The Chair Liberal Angelo Iacono
Thank you, Mr. Adams.
Ms. Côté, you have the floor for five minutes.
Marie-Josée Côté As an Individual
Thank you, Mr. Chair.
Good afternoon to you all, committee members.
My name is Marie‑Josée Côté, and I am the director of government affairs and public policy at Propulsion Québec. With me today is my colleague Stéphane Pascalon, senior project manager.
Propulsion Québec is the—
Conservative
Liberal
The Chair Liberal Angelo Iacono
Can you hear me okay?
Do you hear the translation?
Everything's working. We're going to start over.
Ms. Côté, please start your opening remarks from the beginning.
As an Individual
Thank you, Mr. Chair.
Propulsion Québec is the industrial cluster for zero-emission transportation. Its mission is to accelerate the growth of this sector and strengthen its international competitiveness. We bring together more than 200 Quebec companies that are active in three strategic sectors of the economy: zero-emission vehicles, charging infrastructure and the battery sector, from mining to recycling.
Zero-emission transportation is an economic driver for Quebec, which can count on its renewable energy, critical and strategic minerals, and world-class expertise to build a competitive and wealth-generating industry. Those assets put us at the forefront of contributions to Canada's success in the ongoing industrial revolution.
We appreciate the opportunity to participate in this review of the electric vehicle availability standard. This is an opportunity to take stock of developments in the zero-emission transportation sector and adjust course to move forward more effectively, but it remains essential to continue the efforts that are already under way.
From the outset, Propulsion Québec supports a standard on the availability of electric vehicles in Canada. That's a structural tool that promotes not only the rollout of a charging network in all regions, but also the growth of an entire industrial ecosystem around batteries, critical and strategic minerals, charging stations and energy management software. On that note, let us remember that the Quebec industry includes suppliers of strategic parts, and businesses that specialize in the development and manufacture of charging infrastructure, as well as in the production, assembly and recycling of batteries. Those stakeholders need to benefit from a predictable environment that supports the electrification of transportation. Clear standards build investor confidence, foster innovation and demonstrate strong political will. Thanks to the early adoption of its standard in 2018 and a set of winning conditions, Quebec is now becoming a Canadian leader in electric transportation.
However, we recognize that automakers are currently facing a number of major challenges. Those include trade tensions; tariffs on steel, aluminum and vehicles; and slower growth in electric vehicle sales in Canada.
Given the circumstances, it's important to consider adjusting the standard and its pace to take into account economic and industrial constraints, while maintaining the goal of transitioning to sustainable mobility. Canada must combine pragmatism and ambition to stay competitive, particularly in the face of Europe and China, which are advancing very quickly. The transformation of the Canadian automotive industry is essential to ensure its longevity and sustainability.
We would also like to take this opportunity to reiterate that the standard must be part of a comprehensive industrial strategy for zero-emission transportation. Creating the right conditions for success will be essential to achieving the goals that have been set out. International and Quebec experience shows that an integrated approach that combines regulations, financial incentives and accessible infrastructure remains the key to success. That means that complementary measures are necessary to ensure the success of a standard. In particular, we recommend the urgent reintroduction of the incentives for zero-emission vehicles program to stimulate demand, support for the rapid and consistent deployment of a national charging network across the country, and support for local production, assembly and manufacture of key components and vehicles. The Government of Canada must also become a role model by promoting zero-emission vehicles in its own public vehicle fleets, thereby creating a showcase for all buyers.
In closing, we have to seize the opportunities before us to position Quebec and Canada as North American leaders in sustainable transportation. Now is the time to shape the economy of tomorrow, take concrete action to meet climate targets and provide high-quality, sustainable jobs for future generations. For that reason, we encourage the government to implement an industrial strategy that includes a standard with realistic and ambitious targets, and, above all, robust incentives.
Thank you for your attention. We would now be happy to continue this discussion with you.
Liberal
The Chair Liberal Angelo Iacono
We'll start with the Conservative Party.
Mr. Leslie, you have the floor for six minutes.
Conservative
Branden Leslie Conservative Portage—Lisgar, MB
Thank you, Mr. Chair.
I'd like to start with you, Mr. Adams. You mentioned toward the end of your opening remarks that there are many different models available from many of your members here in Canada, but there are simply not enough customers.
How will manufacturers and, more importantly, car dealers meet their targets if they simply do not have enough customers wanting to buy EVs?
President, Global Automakers of Canada
The car dealers don't have targets. The manufacturers do, but the dealers end up being at the end of the tunnel, if you will, with respect to having EVs on their lots. If they have EVs on their lots and they're not able to sell them, the normal practice is to discount that product. All of that results in.... Even before being discounted, the vehicle is going to stay in the lot longer, which means increased financing costs for the dealer. If they're going to sell it, they have to incentivize that vehicle. A vehicle that's probably being built and sold to the dealer at a loss incurs another loss as well.
Conservative
Branden Leslie Conservative Portage—Lisgar, MB
This is after significant upfront costs for specialized equipment and forklifts and a lot of extra costs, particularly in smaller dealership networks, where liquidity is a problem, just as it is for you and the folks you represent as the manufacturers.
We've heard a lot about the compliance credit system. This costly system will work out to about $20,000. There's some flexibility in how the manufacturer can spend that money.
What are the costs involved, from your perspective, for the manufacturers, and who is ultimately going to bear them?
