Electric vehicle policy in Canada stalled by provincial opposition – 2018 market share at 2.2% of vehicle sales

electric carArticle updated on February 12:

Just as the cost of solar energy has steadily declined, so too has the total cost of ownership of electric vehicles, according to new research from Deloitte  consultancy in the U.K. .  Deloitte’s forecast is that total cost of ownership of electric vehicles will match that of  internal combustion cars  as early as 2021 in the U.K., and by 2022 globally.   By 2030, Deloitte’s also forecasts global EV adoption will rise from two million units in 2018, to four million in 2020, to 21 million in 2030, driven by consumer demand and government incentives.

In Canada:  Electric Mobility Canada, a non-profit advocacy network, released 2018  statistics for sales of electric and hybrid vehicles on February 8.  Their report shows that ev sales amounted to 2.2% of all new car sales in 2018 – disappointing, but a 125% increase over sales in 2017.  There are now approximately 93,000 ev’s in Canada, with almost all concentrated in British Columbia, Ontario, and Quebec.

A federal Strategy for Zero Emissions Vehicles, promised for 2018,  was expected to be announced on January 21 at the meeting of the Council of Ministers Responsible for Transportation and Highway Safety.  The extent of a policy announcement was a quote which appeared in the Toronto Star article: “ Ottawa wants to increase the number of zero-emission vehicles sold in Canada to 10 per cent of new cars sold in 2025, 30 per cent in 2030 and 100 per cent in 2040.”  Frustrated by the lack of progress, the David Suzuki Foundation  is  hosting  a petition titled “Has Canada stalled on electric vehicles?” calling for mandatory targets for electric vehicle sales, ramping up to 30 per cent by 2030 and a temporary purchase incentive program.

Both Ontario and Saskatchewan opposed a national plan at the January Ministers’ meeting, as reported in the Toronto Star in “Ottawa Queens Park spar over federal plan for more zero emission vehicles”  (Jan. 22). The National Observer examines their opposition in “Electric vehicle strategy sputters as provinces battle it out on green policies” (Jan. 18).  The Ford government in Ontario cancelled the EV purchase incentive program in June 2018, and more recently, EV charging stations at the commuter parking lots of the GO regional transit have been removed.

BC ev charging stationsMeanwhile, on February 11, the federal government announced a $1.15-million investment to build 23 electric vehicle fast chargers across British Columbia , in partnership with funding from the provincial government.  The funding comes from the federal  Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative (EVAFIDI), which has budgeted  $182.5-million for fast-charging and natural gas stations across the country.  That program has recently been criticized in a National Observer article, “Close to half of Canadian program touted for electric cars is funding natural gas stations”(Jan. 25) .

Relevant international research:  An October 2018 Briefing paper from the International Council on Clean Transportation: Electric vehicle capitals: Accelerating the global transition to electric drive–  which identifies the 25 cities worldwide with the highest electric vehicle uptake through 2017, and discusses the policies, actions, and infrastructure that have enabled their success. And in December 2018, the ICCT also published  Using vehicle taxation policy to lower transport emissions: An overview for passenger cars in Europe, which highlights the need for taxation incentives at the point of purchase and for gas/electricity consumption, as well as the importance of company fleets “as they make up the highest proportion of new-car registrations in markets such as France, Germany, and the United Kingdom.”

B.C. Cleantech start-up companies show dramatic growth and a confident future

BC cleantech coverIn mid-March, the B.C. Cleantech CEO Alliance released British Columbia Cleantech: Status Report 2016 , the result of a survey conducted by consultants KPMG in Fall 2016.   The new Status Report  shows “dramatic growth” since the previous report in 2011, supporting the Alliance branding of B.C. cleantech as “the next pillar of the Canadian economy”.

Between 2011 and 2016,  “the number of Cleantech companies is up 35% to 273, the number of BC-based employees is up 20% to 8,560, average wages have increased by 24% to $84,000 and the amount of equity raised is also up 25% to $6 billion.” The sector employs highly trained workers, such as engineers, designers, and sales and marketing professionals, resulting in that high average salary. 91% of companies are located in the Greater Vancouver area.

The survey respondents were only those early-stage companies whose primary purpose is developing new technologies – respondents were distributed as follows:  20%  energy generation; 16%   transportation; 12 % Building efficiency; 12% Resource recovery and waste management; 11% industrial efficiency; 11% water and waste water; 7% transmission and storage; 4% sustainable agriculture,  and a miscellaneous 7% remainder. Given the early stage of these companies, the key focus in the survey was on the sources of finance and the business climate for entrepreneurs. Results show that there is a heavy reliance on federal and provincial government incentive programs – for example, 75% of respondent companies had applied to the Scientific research and experimental development (SR&ED) program and over half had applied to the federal Industrial Research Assistance Program (IRAP).

Clean Energy From Canadian Perspective: a Call for Renewable Policies in Canada and a Global Review

“A New National Prize: Making Clean Energy the Next Oil Sands” by Clare Demerse and Dan Woynillowicz appears in the September October issue of Policy magazine. The article distills the findings of the UN-backed study, Pathways to Deep Decarbonization, in which research teams from 15 countries, including Canada, proposed strategies for national energy reform that will allow us to limit global temperature rise to below 2 degrees.

The report of the U.N.-based Pathways project was presented to the Secretary General in July, to support the UN Climate Summit in September. The press release and details of the Pathways project is at: http://unsdsn.org/news/2014/07/08/ddpp-press-release/.

The Demerse/Woynillowicz article summarizes the overall findings and focuses on the Canadian findings, including that by 2050, wind and solar sources could comprise 27% of Canadian electricity generation, up from 2% today. The article concludes by proposing two simple policy changes to kick off a stronger commitment to clean energy in Canada: more favourable tax treatment for power storage and solar technologies, and consumer incentives for electric vehicles. See “A New National Prize” at: http://policymagazine.ca/pdf/9/PolicyMagazineSeptember-October-14-DemerseWoynillowicz.pdf.

Citing the “wave of hope” generated by the People’s Climate March, on SeptTER-Global-Cover-300ember 21, Clean Energy Canada released its first-ever annual review, called Tracking the Energy Revolution: Global Edition at: http://cleanenergycanada.org/2014/09/21/tracking-energy-revolution-builds-surging-wave-hope/. With maps, photos and infographics, it is loaded with statistics that reveal the extent of the global shift to renewable energy by governments and businesses.