Good morning to the members of the committee, and thanks for having us here today to share some of our thoughts.
Clean Energy Canada is a think tank based at the Centre for Dialogue at Simon Fraser University, and we work to address climate change by accelerating Canada's transition to a clean energy system. I'd like to focus my comments this morning on recommendations that will support the federal government's implementation of the pan-Canadian framework on clean growth and climate change, and more specifically the forthcoming zero-emission vehicle strategy.
Canada's transition to electric vehicles will result in significant emission reductions. Transportation accounts for nearly a quarter of Canada's carbon pollution today, and electric cars can make a big dent in that. That's especially true when they're charged from clean power, and Canadians are fortunate to have an electricity supply that's already 80% non-polluting.
An effective zero-emission vehicle strategy can help position Canada as a strong competitor in the global transition to clean cars, and budget 2018 should provide the funding needed for that strategy to succeed. That means using the budget to help advance three goals: first, making it easier for Canadians to choose an electric vehicle; second, making it easier for Canadians to charge an electric vehicle; and third, helping ensure that Canadian businesses can capture the economic opportunity presented by the global shift to electric vehicles.
To make it easier for Canadians to choose an electric vehicle, we need to provide them with an efficient way to get high-quality information and provide them with an opportunity to actually test drive and compare different vehicles. The reality in Canada right now is that it's hard to find an electric car at most dealerships to test drive, let alone purchase. Myself, I've been a lifelong Volkswagen driver, and I was excited when they released an electric Golf earlier this year. I contacted my local dealership to see about going in and taking a look at one, perhaps taking a test drive; and I was told that they had already sold out, there were none on the lot, and there wouldn't be until next year.
Now, this isn't uncommon. A 2015 study found that more than a half of certified electric vehicle dealerships in Canada didn't have a single electric vehicle in stock. Based on this kind of inventory, the study concluded that it was five times harder in Canada to purchase an electric car than in the United States. Not surprisingly, a follow-up study in 2017 concluded that a lack of inventory statistically decreases consumer interest in buying an electric car.
To remedy this, the federal government should support a national network of electric vehicle discovery centres modelled on the facility operated by Plug'n Drive in Toronto. This facility allows interested consumers to learn about electric cars without any pressure to buy and take models out for a test drive.
I had the chance to visit the EV discovery centre in Toronto last week, and not only was I able to test drive one of Volkswagen's e-Golfs, I also got to drive the Chevy Bolt and the Nissan LEAF and learn a lot about those different models and what they had to offer with no pressure to buy. Had I wanted to move forward with a purchase, I would have just been referred to any of the local dealerships in the area.
It's a proven a model, and we believe it should be expanded to other parts of the country as a public-private endeavour, similar to the model in Toronto that includes funding from utilities, from the car manufacturers, the Government of Ontario, as well as TD Bank.
Once a consumer decides they'd like to purchase an electric vehicle, there is still the challenge of overcoming higher purchase prices. There's no question that rebates matter. The three provinces in Canada that offer rebates for the purchase of zero-emission vehicles account for 95% of Canadian sales. During the transition period until electric cars attain price parity with internal combustion engine vehicles, well-designed point-of-sale rebates are an important tool that the federal government should offer coast to coast for consumers purchasing zero-emission vehicles. For budget 2018, a national commitment to electric vehicle rebates would send a powerful signal.
To make it easier for Canadians to charge electric vehicles, you've heard recommendations from the Canadian Automobile Dealers Association, Plug'n Drive, the Canadian Vehicle Manufacturers' Association and Electric Mobility Canada; so I won't comment further, other than to add our support to their recommendations for sustained investment in electric vehicle charging infrastructure across the country.
Lastly, but just as significantly, the economic opportunities of a domestic and global shift to electric vehicles are compelling. Canada has strong technical capabilities in auto parts, manufacturing, and automotive innovation. Electric cars and their charging infrastructure also require significant software and technology expertise, another area of Canadian strength.
Canada is rich in many of the natural resources, such as copper, required for the construction of electric cars. For example, electric vehicles require four times more copper than internal combustion engine vehicles.
To ensure that Canadian businesses can capture this economic opportunity, the federal government should support an updated and expanded zero-emission vehicle technology road map, a tool that the federal government has successfully used for other sectors to assess Canada's strengths and determine how best to capitalize on them.
Thank you for the opportunity to provide these recommendations. I look forward to your questions.