New Zero Emissions Standard takes effect in Quebec January 11, 2018

Electric car London 2013On December 27, Quebec enacted  a new Zero Emissions Vehicle Standard  in the form of Final Regulations to Bill 104, An Act to increase the number of zero-emission motor vehicles in Quebec, (which passed in October 2016).  The new Standard  comes into effect January 11, 2018, and is meant to increase the supply so  that  10% of new-vehicle sales or rentals in the province will consist of zero-emission vehicles (ZEV) or low-emission vehicles (LEV) by 2025.  Earlier in December, the government had announced a committee to monitor implementation of the regulations, with  representatives from the Corporation des concessionnaires automobile du Québec (CCAQ), the provincial Department of Sustainable Development, Environment and the Fight Against Climate Change (MDDELCC) and the Coalition zéro émission Québec (CZÉQ), as well as environmental group Équiterre.  Équiterre’s reaction to the new Standard  is favourable ; the Global Automakers of Canada press release states it “needs more work”, reflecting the  industry opposition reported in the Montreal Gazette  when the regulations were first unveiled in July 2017. Full details and documentation are available from the Quebec government website in English and in French .

Quebec launches public consultation on energy transition

On October 17, Transition énergétique Québec (TEQ) announced  the launch of a public consultation process, to  begin Nov. 6 and continue until Dec. 3, 2017, regarding the province’s proposed Master Plan for Energy Transition for the next five years. In addition to compiling public input, TEQ will host thematic workshops focused on residential building, commercial and institutional building, passenger and freight transportation, industry, innovation, bioenergy and land-use planning.  The Consultation website is available in  French only; the TEQ English website  has not yet been updated with any information about the consultation process.

Transition énergétique Québec (TEQ)  is a public corporation created in April 2017 as part of Québec’s 2030 Energy Policy , to support and promote energy transition and coordinate the implementation of energy policies in Quebec.   The current policy document, Energy in Quebec: A source of Growth (2016) sets goals to  enhance energy efficiency by 15%, reduce the amount of petroleum products consumed by 40%  , eliminate the use of thermal coal,  increase overall renewable energy output by 25%,  and increase bioenergy production by 50%.

Ontario, Quebec and California sign formal agreement to link their carbon markets

On September 22, Premier Couillard of Quebec hosted Premier Wynne of Ontario and California Governor Jerry Brown in Québec City, where they signed an agreement which formally brings Ontario into the existing joint carbon market of the Western Climate Initiative (WCI).  This comes as no surprise: the government had announced its intention to join the WCR in April 2015 as part of its Climate Change Action Plan.  When Ontario joins up with Quebec and California, effective January 1, 2018,  the carbon market will cover a population of more than 60 million people and about C$4 trillion in GDP. The three governments will harmonize regulations and reporting, while also planning and holding joint auctions of GHG emission allowances.  Text of the Agreement on the Harmonization and Integration of Cap-and-Trade Programs for Reducing Greenhouse Gas Emissions is here.  Here is  an introduction to Ontario’s cap and trade program, which was announced as part of the  For an up-to-date description of the Western Climate Initiative and its importance as a model for sub-national, international co-operation, see   “Will Other States Join California’s International Climate Pact?”  in The Atlantic (August 10  2017).

The Western Climate Initiative Inc. is  based in Sacramento California, and  is now  “a non-profit corporation formed to provide administrative and technical services to support the implementation of state and provincial greenhouse gas emissions trading programs” .

2 million electric vehicles globally, and less than 30,000 in Canada. How best to encourage more?

Electric vehicles Wikimedia Commons 768x512.jpg

From Wikimedia Commons

The latest edition of the Global EV Outlook 2017 was released by the International Energy Agency (IEA) in June, reporting that the global electric car stock, (mainly Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs)), surpassed 2 million units in 2016 – an increase of 60% from 2015. China is the leader with the most vehicles, at 648,770 units, followed by the U.S. at 563,710.  China is also the leader in other electrified modes – with over 300,000 electric buses.  In terms of market share, Norway, with its its small population of 5.25 million  is the leader: its 133,260 units represent a 28.76% market share. Canada, with its population of 36.5 million people,  is well behind the pack with an electric vehicle stock of 29,270 units, representing a market share of 0.57%, according to the IEA.   (Perhaps not so bad, considering that electric vehicles still only represent 0.2% of all passenger cars worldwide) . Besides tabulating national statistics and trends regarding vehicle stock and charging stations, the report includes a substantial discussion of supportive policies amongst the member countries.

Canada committed to developing a national strategy to increase the number of zero-emission vehicles on Canadian roads by 2018  in the Pan-Canadian Framework agreement,  and the policy process is currently under review – as summarized in an article in the National Observer .  On May 26, the Minister of Transport announced that:  “ a national Advisory Group has been established to contribute to developing options for addressing the key barriers for greater deployment of these technologies in five areas: vehicle supply, cost and benefits of ownership, infrastructure readiness, public awareness, and clean growth and clean jobs.  The Advisory Group includes representatives from governments, industry, consumer and non-government organizations and academia. ”  One of the members of the Advisory Group is the non-profit Équiterre , which at the end of May released a new report :   Accelerating the transition to electric mobility in Canada .  The report modelled three scenarios for ZEV adoption and concluded that only “the scenario with a legal mandate to sell a certain number of electric vehicles resulted in the market share necessary to drive down greenhouse gas emissions in line with international targets.”

Another new report, from the Ecofiscal Commission, Supporting Carbon Pricing:  How to identify policies that genuinely complement an economy-wide carbon price , provides a detailed case study on electric vehicle subsidies  in Quebec, including a consideration of how they interact with other emissions regulations.  The Ecofiscal report suggests that the current subsidy system  results in a high cost for emissions reduction, and that flexible regulations “might be a more cost-effective approach to increasing ZEV uptake” than a supply-side mandate .   Currently, Quebec is the only Canadian jurisdiction with such supply-side regulation; under Bill 104, passed in October 2016, 3.5 % of the total number of vehicles sold or leased by car manufacturers in Quebec must be zero emissions vehicles starting in 2018,  and by 2020, the standard will  rise to 15.5 %. For an overview of the issue and support for the rebate policy option, see Clare Demerse’  article in Policy Options, “Rebates should be part of electric car strategy”  (June 9) .

Canada has signed on to a new international campaign, EV 30@30, which was announced on June 8 at the 8th Clean Energy Ministerial (CEM8) held in Beijing .  The press release  for the campaign states a target of  at least 30 percent new electric vehicle sales by 2030, and: “The campaign will support the market for electric passenger cars, light commercial vans, buses and trucks (including battery-electric, plug-in hybrid, and fuel cell vehicle types). It will also work towards the deployment of charging infrastructure to supply sufficient power to the vehicles deployed.”   A large part of the implementation will be through efforts to increase public and private sector commitments for EV fleet procurement and deployment. The program will also establish a Global EV Pilot City program to reach 100 electric vehicle-friendly cities around the World over five years, and encourage research into all aspects of deployment.  Full explanation of the 30@30 campaign is here .

Along with Canada, other countries signing on to the EV30@30 campaign include China, Finland, France, India, Japan, Mexico, the Netherlands, Norway and Sweden.  (The U.S., U.K., Korea and South Africa are members of the CEM Electric Vehicle Initiative, but did not sign on to the 30@30 initiative).  In addition to participant countries, the following groups support the campaign:  C40, the FIA Foundation, the Global Fuel Economy Initiative (GFEI), the Natural Resource Defence Council (NRDC), the Partnership on Sustainable, Low Carbon Transport (SLoCaT), The Climate Group, UN Environment, UN Habitat, and the International Zero Emission Vehicle Alliance (ZEV Alliance).

Federal government about to release its proposals for promised national carbon pricing system as California debates radical changes to its cap-and-trade program

In advance of a consultation paper by the federal government, expected to be released in the week of May 15, the Pembina Institute released a Backgrounder report , Putting a price on carbon pollution across Canada . The Pembina report  outlines the current federal and provincial carbon pricing policies in Canada, and makes recommendations for the national benchmark plan promised by 2018. Recommendations  include that any benchmark should at least  provide guidance on treatment of Export Import Trade Exposed sectors and be designed to minimize carbon leakage and competitiveness impacts; and stipulate that cap-and-trade systems must have a cap decline rate in line with a 30% reduction below 2005 levels by 2030. Pembina places emphasis on the need for a 2020 carbon pricing review, as well as frequent carbon pricing and climate policy reviews to ensure that Canada meets its obligations under the Paris Agreement.

A briefer paper on carbon pricing, also released in May, also summarizes the existing provincial carbon pricing plans – but from a right-wing point of view. From the Fraser Institute:   Poor Implementation undermines Carbon Tax efficiency in Canada  .

Also on the topic of carbon pricing, Pembina posted a blog  on May 11 “Time for Premier Brad Wall to focus on carbon price implementation” , in which Nathalie Chalifour, a Professor of Law at University of Ottawa, explains her opinion that the federal government is within its constitutional authority to impose a carbon pricing mechanism on the provinces, despite Saskatchewan Premier Brad Wall`s recently stated opinion to the contrary.

Meanwhile, as reported in the National Observer (May 4) , “California tables new cap-and-trade plan that jumps ahead of Quebec and Ontario” . Quebec and California  have a linked carbon credit market that expires at the end of 2020, and Ontario`s cap and trade plan is schedule to link to the California−Quebec system in 2018.  Continued partnership with California  will demand that those provinces raise their minimum price per tonne of carbon and abolish offsets, among other changes outlined in the  bill currently before the California state Senate . For a full discussion of the proposed legislation, read “California is about to revolutionize climate policy … again” (May 3) in Vox.  Author David Roberts states: ” The changes that SB 775 proposes for the state’s carbon trading program are dramatic — and, to my eyes, amazingly thoughtful. I know some environmental groups have reservations (on which more later), but in my opinion, if it passes in anything close to its current form, it will represent the most important advance in carbon-pricing policy in the US in a decade. Maybe ever.”