Auto industry says environment minister won't relent despite calls to scrap EV mandate
He says while the government recognizes there is a challenge with EV sales and meeting the current targets, what remains unclear is what it intends to do next.
Article content
'Minister Dabrusin and Environment Canada seem to be committed to having an (electric vehicle) mandate in place, and we continue to make the case to them that there are no changes that you could make to this mandate that will solve the current situation that we're in,' he told National Post, on a call while he attended the premiers meeting in Ontario's cottage country.
Article content
Any changes the government might consider would take time to implement, he said, adding that there was 'deep frustration' within the industry as it must decide how to meet the upcoming targets, with one option being to restrict sales of internal combustion engine vehicles.
Article content
'This is urgent,' Kingston said. 'This isn't a tomorrow problem.'
Article content
Article content
Under the policy, companies could earn credits either by selling zero-emission vehicles, which include plug-in hybrids or ones powered by hydrogen, purchasing credits from another electric vehicle maker, or spending money on building out charging infrastructure.
Article content
Should they fail to meet the targets, they could face penalties under the Canadian Environmental Protection Act.
Article content
'The environment minister does not want to scrap the mandate— that was made very clear to us, and that is extremely problematic for the industry. That option cannot be off the table. It is the most effective and fastest way to address this current problem,' Kingston said.
Article content
In a statement, a spokesperson for Dabrusin said the policy was implemented to give Canadians access 'to affordable zero-emission vehicles to fight climate change with Canadian innovation.'
Article content
Article content
'The standard is currently in place, and we are continuing to meaningfully engage with industry and explore flexibility to make sure that our measures reflect (the) times we are in,' spokesperson Jenna Ghassabeh wrote.
Article content
Flavio Vlope, president of the Association of Automotive Component Manufacturers, who was also at the premiers' gathering, said he had spoken to around half a dozen ministers regarding the mandate and that the government was consulting 'heavily' with industry.
Article content
With the environment minister not appearing to entertain the question of scrapping the targets, he said the 'pressure is on' Dabrusin's department to make them 'mean something.'
Article content
'Because right now, all they mean is a setup for failure,' he said.
Article content
'There are lots of ways to help the industry here move along the immutable march to electrification, but as currently configured, all it does is punish them, and nobody needs religion right now.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Global News
an hour ago
- Global News
How Toronto considered a privately-operated tunnel to alleviate congestion
Long before Premier Doug Ford championed the idea of a tunnel under Highway 401, the City of Toronto briefly considered a near-identical proposal from a Canadian engineering firm — one that would have seen twin tunnels under the Gardiner Expressway to relieve congestion. The proposal, obtained by Global News through freedom of information laws, outlined plans for one tunnel between Jameson Avenue and Cherry Street and a second tunnel connecting Front Street and Spadina Avenue to Exhibition Place. The pitch, which was first made by John Beck, then-CEO of construction firm Aecon, in 2015, was formalized two years later and presented to then-mayor John Tory and senior staff. While the idea was later dropped, Tory's office appeared to be seriously weighing the project and pushed a Toronto-area Liberal MP to consider the proposal as part of the newly created Canada Infrastructure Bank. Story continues below advertisement 'Potential marquee, first-out-of-the-gate project for the Infrastructure Bank,' Tory's chief of staff Chris Eby wrote to the federal MP in 2017, under the subject line 'Gardiner tunnel.' Sources, however, insist the idea was considered moot when the city decided to rehabilitate the Gardiner instead. In an earlier statement to Global News, Aecon said the company has a long history of 'sharing emerging technologies and innovative new approaches with decision makers.' 'Aecon is proud to have built game-changing energy and transportation projects for Ontarians,' the company said in a statement. 'Building tunnels in support of transit and roadways to help relieve congestion is one solution that makes sense.' A tolled tunnel As part of its presentation to the city — titled 'GTConnect initiative' — Aecon proposed a wide-ranging solution for the Gardiner Expressway, Don Valley Parkway and Lakeshore Boulevard. Story continues below advertisement The idea would have included two main tunnels, a two-lane expansion to the DVP, and a potential transit corridor on a 'modified Lakeshore boulevard' — all of which would be financed, operated and maintained by the developer for a 50-year term. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The benefit to the city, Aecon argued, would come in the form of 2,000 construction jobs, new land development opportunities and 'enhanced value of city and provincial lands.' View image in full screen A presentation about the proposed tunnel obtained using freedom of information laws. Global News While commuters would save '10-20 minutes during peak hours,' drivers would have to pay for the privilege. The company's proposal said the dual-tunnel route, along with the expanded lanes of the DVP, would be tolled for a 50-year period. The slide deck also includes key timelines for the proposed project: 18 to 24 months to conduct an environmental assessment; 36 months to build the Front Street tunnel and widen the DVP and 72 months to build the Gardiner Expressway tunnel. Story continues below advertisement Emails, obtained by Global News, show Tory's office was personally in touch with then-Aecon CEO John Beck and arranged a meeting with company representatives for Oct. 20, 2017. Six days after the meeting took place, Tory's chief of staff punted the idea to the federal government, asking for it to be considered for Infrastructure Bank funding. A provincial pitch To cover its bases, Aecon also went to the provincial government, which has significantly more financial firepower and oversees the rest of Ontario's highways, to pitch the same idea. Sources said Beck, who was appointed to the Order of Ontario in 2024, presented the same idea to the Ministry of Transportation, suggesting Aecon was looking for provincial support for the Toronto Gardiner tunnel. The proposal, sources said, never made it past the one meeting. Story continues below advertisement In 2019, the idea was revived once again, but this time it moved north to target the growing gridlock on Highway 401. The company filed an unsolicited proposal to Infrastructure Ontario offering a potential tunnel as the cure to highway congestion at a cost, sources said, of roughly $50 to $60 billion to build. The 22-kilometre expressway tunnel proposal would have taken drivers under the most congested portions of Highway 401 — from the 427 to the 404 — with periodic on and off-ramps and a potential connection to Toronto Pearson International Airport. While it's unclear how closely the two proposals would have aligned, Aecon appeared to be offering what governments had been looking for: a job-creating, traffic-alleviating solution along with 'world-class transportation infrastructure,' and entirely funded by the private sector. The pitch may have been tempting, with the Ford government now studying a strikingly similar plan to build beneath Highway 401.
Cision Canada
an hour ago
- Cision Canada
Due to spending restraint Calgary and Edmonton spend significantly less per person than Alberta's highest-spending municipalities
CALGARY, AB, Aug. 7, 2025 /CNW/ - The per-person municipal government spending levels in Calgary and Edmonton—Alberta's largest and most populous cities—are near the average spending level of the province's major municipalities, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. "While there's always room for improvement, the municipal governments in Calgary and Edmonton have done a better job at restraining spending than many other municipalities in Alberta," said Austin Thompson, senior policy analyst at the Fraser Institute and author of Comparing Per-Person Expenditure and Revenue in Major Albertan Municipalities, 2009-2023. According to the study, which compares the finances of 25 Alberta municipalities, in 2023 (the latest year of comparable data), Edmonton ($3,241) and Calgary ($3,144) spent close to the per-person spending average ($3,239) among the 25 municipalities, and significantly less than the highest spenders, which include Grande Prairie County ($5,413), Red Deer County ($4,619) and Lethbridge ($4,423). Subsequently, in terms of per-person spending, Edmonton ranked 12 th highest and Calgary ranked 13 th highest. Moreover, despite significant population growth, both cities restrained spending. From 2009 to 2023, Edmonton's population grew by 38.2 per cent and Calgary's population grew by 33.7 per cent, yet per-person spending (after adjusting for inflation) grew by 4.8 per cent in Edmonton and 2.1 per cent in Calgary. "It's ultimately up to Albertans to decide if they get good value for their municipal tax dollars, but it helps to compare spending levels among municipalities across the province," said Jake Fuss, director of fiscal policy at the Fraser Institute. Municipal government spending per person in Alberta (2023) Municipality spending per person rank of 25 Grande Prairie County $5,413 1 Red Deer County $4,619 2 Lethbridge $4,423 3 Canmore $4,154 4 Strathcona County $4,106 5 Red Deer $3,788 6 Cold Lake $3,646 7 Leduc $3,452 8 Rocky View County $3,419 9 Grande Prairie $3,342 10 Fort Saskatchewan $3,259 11 Edmonton $3,241 12 Calgary $3,144 13 Parkland County $3,141 14 St. Albert $3,129 15 Sylvan Lake $2,859 16 Spruce Grove $2,760 17 Camrose $2,744 18 Stony Plain $2,695 19 Beaumont $2,626 20 Foothills County $2,570 21 Okotoks $2,456 22 Airdrie $2,187 23 Cochrane $2,142 24 Chestermere $1,652 25 Municipal government average $3,239 Note: This ranking excludes Medicine Hat due to its unique status as the only Alberta municipality operating both an electricity and natural gas utility. Further details are available in the study. The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit SOURCE The Fraser Institute
Vancouver Sun
2 hours ago
- Vancouver Sun
Five auto CEOs warned Carney in May that EV mandate would 'inflict serious damage' across industry
OTTAWA — Less than two weeks after the Liberal cabinet was sworn in, the presidents of the five major automakers appealed directly to Prime Minister Mark Carney, requesting him to 'urgently' repeal the federal zero-emission vehicle sales mandate, warning of industry-wide repercussions if it is not. More than two months later, and with no public indication as to whether the government will listen, frustration is only building, says Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, which sent the May 26 letter and represents Ford, General Motors, and Stellantis. The letter was signed by Ford Canada CEO Bev Goodman, General Motors Canada President Kristian Aquilina, Honda Canada President and CEO Dave Jamieson, as well as Stellantis Canada CEO Jeff Hines and Toyota Canada President and CEO Cyril Dimitris. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'If the mandate is not urgently repealed, it will inflict serious damage on automakers, the dealership network, and the hundreds of thousands of Canadians employed in the sector,' the letter reads. Kingston said the fact that all five CEOs signed their names was noteworthy and speaks to how pressing they view the matter. 'When all five CEOs of the (original equipment manufacturers) that build and employ Canadians write in on a single issue, that signifies the level of urgency regarding the (electric vehicle) mandate.' A response from the Prime Minister's Office has not yet been returned. Back in July, Carney met with several of the auto CEOs to discuss the ongoing trade war with U.S. President Donald Trump, who has targeted the auto industry with tariffs. During the meeting, they raised the need to revoke the mandate. In the private letter, which was sent to other ministers and government officials, and released to National Post under federal access-to-information legislation, the five automakers outline their commitments to electrification and cite the 'tens of billions' of investments announced in Canada. It points out that Canadians have access to more than 100 different types of zero-emission vehicles and that Transport Canada's figures show the availability of these vehicles to be 'meeting or exceeding' consumer demand. The letter states that despite these efforts, electric vehicle sales have plummeted, referencing the latest available Statistics Canada figures for March, which showed sales fell to around 6.5 per cent of total vehicle sales. In the first quarter of this year, Statistics Canada recorded zero-emission vehicle sales in Canada, representing 8.7 per cent of new vehicle registrations, down 23 per cent from the previous year. The CEOs said the drop was 'in direct response' to the federal and provincial governments either 'weakening or eliminating purchase incentive programs that had been supporting demand.' Ottawa ended its program back in January, as did Quebec, which has since introduced a rebate. Flavio Nienow, a spokesman for Transport Canada, the department responsible for developing the rebate, said in a statement that the government ' understands that the higher purchase price of (electric vehicles) remains a key barrier to mass zero-emission vehicle adoption.' Laura Scaffidi, a spokeswoman for Transport Minister Chrystia Freeland, said the government was looking at ways to reintroduce a rebate of up to $5,000, but did not provide a timeline. In their letter from May, the CEOs cast doubt on the ability of a new rebate to cause electric vehicle sales to make a turnaround, citing other challenges such as 'natural consumer demand,' as well as the lack of infrastructure and challenges around affordability and slow adoption by commercial and government sectors. These factors combined 'make the current targets unrealistic and unattainable.' The letter requests that the mandate be repealed, given there was 'no longer a pathway' to reach its first target of seeing 20 per cent of new vehicle sales be zero-emission vehicles by 2026. Transport Canada defines a zero-emission vehicle as a fully electric, plug-in battery hybrid, or one powered by hydrogen fuel cells. The mandate, which the federal government formalized in 2023 to reduce greenhouse gas emissions within the transportation sector, sets out sales targets companies must hit, beginning with 20 per cent in 2026 and then rising to 60 per cent by 2030 before hitting 100 per cent by 2035. 'Given the impending 20 per cent requirement for 2026, the federal mandate is already forcing automakers to either limit combustion engine (ICE) and hybrid vehicle sales in Canada, or purchase credits from automakers like Tesla that do not produce vehicles in Canada,' the letter reads. It warns that the regulation would result in lower vehicle sales and fewer jobs in the sector and higher prices for consumers. 'This will undermine consumer affordability and choice at a time of rising costs, limited demand, and growing uncertainty about infrastructure readiness.' It argues that existing regulations for greenhouse gas emissions would drive the transition to electric vehicles and provide more flexibility. Environment Minister Julie Dabrusin and other ministers have been meeting with industry to discuss their concerns, with Dabrusin's office saying it was exploring 'flexibility.' Spokeswoman Jenna Ghassabeh reiterated that position in a new statement, saying the government was engaging with industry to ensure measures 'reflect times we are in.' Kingston, who met with Dabrusin last month, said the minister appears committed to the policy. He said some at Environment Canada have been 'pushing back' against their concerns that the matter is urgent. 'We need a clear public signal that it will be repealed, or automakers are going to continue to have to make disastrous choices, which is restricting vehicle sales and buying credits from Tesla.' National Post Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here .
