Environment Committee on Sept. 22nd, 2025

[Megan Nichols]

The EV subsidies, the federal ones, are a responsibility of Transport Canada, so I would defer to them on what to expect going forward.

In terms of what we've seen through results, last year we did see sales of EVs of up to over 15% across Canada, a significant increase since before those subsidies were in place. This year, without those subsidies in place, and also with some provincial incentives winding down, we have seen sales drop to about 9%.

I do think it's important, though, to note there are other factors that have likely driven that decline, such as upfront price parity, as we've seen, not coming quite as quickly as we expected it to, so that even with the incentives, there is often still a price differential. Then, also, there's the impact of what's happening in the U.S. market for EVs with the policies in the U.S. The impact of tariffs is having a bit of an impact as well. There are many different factors, which is why we are taking a pause to look at the current mandate and make sure that it's fit for purpose.

That said, it's important to note that, as with many things, we do think a suite of initiatives is important. It's not just the mandate and it's not just incentives: It's also looking at charging infrastructure and making sure that there's a range of choices available to Canadians to meet their needs.

[Eric St-Pierre, Liberal, Honoré-Mercier, QC]

I have a follow-up question. Can you comment on global sales of electric vehicles? Are they flatlining? Are they going down? Are they going up?

If you can refer to other countries, that would be great. Thanks.

[Megan Nichols]

I think the most recent data we have is that about one in four vehicles sold globally is a zero-emission vehicle. I'm not too sure what the latest trend is, but I think it's continuing to increase. In areas where it's increasing more rapidly—the EU, Norway and in China right now—I believe about one in two light-duty vehicles is an electric vehicle.

[Wade Grant, Liberal, Vancouver Quadra, BC]

To expand on that, I wanted to know what the early indicators are that global demand for low-carbon products will grow. How is Canada positioning itself for that?

[Alison McDermott]

Price is one of the big factors. In terms of an indicator or likelihood, the price of the Chinese electric vehicles has come down very dramatically. They're extremely low-cost. In countries where they're being exported, the demand's quite high.

It's similar for other relevant types of clean economy products, like batteries. The cost of batteries and the cost of solar panels continue to come down dramatically. That, of course, makes the demand grow very strongly.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Mr. Chair.

Witnesses, on November 10, 2023, your department issued a press release indicating that the Government of Canada was committed to investing up to $8 million to protect green spaces in east Montreal. Obviously, the canopy rate and the proximity of the Port of Montreal are important issues. Other investments have been made jointly with Housing, Infrastructure and Communities Canada, I believe, including the planting of over 200,000 trees in east Montreal. Again, I recognize the need for reforestation.

That said, I had asked the former Minister of the Environment, Mr. Guilbeault, to see whether Rouyn-Noranda, given all the problems with the Horne smelter, could also receive access to such funding. Unfortunately, it was very difficult to obtain any concrete follow-up. I would therefore like to know what criteria your department used to say yes to east Montreal but no to Rouyn-Noranda.

[Tara Shannon]

Thank you for the question.

I'm not familiar with both projects. I think we'd have to follow up with a written answer.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Would it be possible for you to check and provide me with an answer in writing to find out what criteria are put forward and what alternatives could be proposed? I think action is also urgently needed in Rouyn-Noranda. The federal government has thus far turned a deaf ear to environmental issues related to the Horne smelter.

[Tara Shannon]

We'll follow up in writing. Thank you.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you.

Something else caught my attention under the circumstances. How can we ensure that we also protect the environment in more southern regions?

When it comes to defining protected areas, I get the impression that this rarely happens in the southern regions or regions that are more densely populated. Whether in Ontario or Quebec, protected areas are rarely established in those regions, and large areas are chosen instead. Don't get me wrong—I'm in favour of protecting large areas. However, we have economic development issues.

Could there be better parity in these protected areas between the more urban areas located further south and the northern regions?

[Tara Shannon]

Thank you for the question.

The cost of protection is higher in the south than it is in the north. The south of Canada is the area with the highest biodiversity value, so that is often an area where we put a lot of our attention.

There are a number of factors that go into a decision to invest in potential protected areas, so there's not one set of criteria. There's a factor analysis, including, most importantly, the collaboration and co-operation with stakeholders. We as a federal government are not, for the most part, owners of the land, so we cannot advance protected areas without the support and close collaboration of the implicated governments and stakeholders in that particular area.

[The Chair, Liberal, Angelo Iacono]

Thank you, Ms. Shannon.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you.

Is that—

[The Chair, Liberal, Angelo Iacono]

Mr. Lemire, your time is up.

That puts an end to this meeting.

I'm sorry, Mr. Leslie; if I attribute some time to you, I have to give it to everybody. I've been generous with everybody. I've also been generous with the departments, giving them a little extra time to be able to complete their responses.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

I have a point of order, Mr. Chair, that is unrelated to that. I appreciate the round requirements here.

There have been lots of questions about Parks Canada. I know that they've been somewhat hived off to a different department, but I'd be surprised if they were completely outside of ECCC. I'm curious to know whether it might be worth adding them to the list for Thursday's meeting to be able to answer many of the questions that were offered here today.

[The Chair, Liberal, Angelo Iacono]

Unfortunately not, because Parks Canada has now been moved to Canadian Heritage. This is why those questions are not being addressed.

[Branden Leslie, Conservative, Portage—Lisgar, MB]

Just to clarify, do they have no involvement with ECCC anymore? Perhaps the department has an answer to that.

[The Chair, Liberal, Angelo Iacono]

It's now under the Canadian Heritage.

Would you like to say something, Ms. Shannon?

[Tara Shannon]

No. I was just going to say “yes”.

[The Chair, Liberal, Angelo Iacono]

Are there any other questions?

Go ahead, Mr. Lemire.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Chair, I would like to ask for clarification. You're telling us that the committee can no longer examine environmental issues related to Parks Canada because issues related to that agency now fall under the Standing Committee on Canadian Heritage. Parks Canada will no longer be accountable to us on environmental issues. Did I understand correctly?

[The Chair, Liberal, Angelo Iacono]

The committee can invite whomever it wants, at the discretion of its members. That said, it is true that Parks Canada now falls under the mandate of the Standing Committee on Canadian Heritage.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

I think the Conservatives have made a fairly clear request to invite Parks Canada to the next meeting. If it's a formal proposal, I'll support it.

[The Chair, Liberal, Angelo Iacono]

The committee will already be hearing from two agencies next time. You weren't at the last meeting, when I explained my goal of setting aside Monday and Thursday that week to hear from those departmental and agency officials.

Your colleague exerted considerable pressure for us to do things another way because he wanted to do a different study. In the end, as you can see, the committee will be hearing from two other agencies next time. As a result, I don't think there will be enough time to hear from Parks Canada officials. If the committee wishes to call that agency, then it will be for another time, and I will need a little more information.

The committee is scheduled to next meet on Thursday, September 25, 2025, at 11 a.m. We will receive further briefings from the Impact Assessment Agency of Canada and the Canada Water Agency.

I'd like to thank all the officials for being present today.

Is it the will of the committee to adjourn the meeting?

[Some hon. members]

Agreed.