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National Post

Electric vehicle mandate risks being next carbon tax without 'adjustments,' EV industry warns

OTTAWA — The head of a national association representing the electric transportation industry says the federal government, and provinces with a zero-emission vehicle sales mandate, should make 'short-term adjustments' to their programs at the risk of the policy going the way of the now-cancelled consumer carbon tax. Article content Electric Mobility Canada President Daniel Breton's comments come as auto-makers and others in the industry express a fresh round of concerns about the Liberals' sales mandate, which has set a target of reaching 100-per-cent zero-emission vehicle sales by 2035, beginning with initial targets of hitting 60 per cent by 2030 and at least 20 per cent by 2026. Article content Article content Article content 'We believe that B.C, Quebec, and the federal government should make short-term adjustments, because between now and 2030 we don't know yet what's going to happen south of the border. We don't know yet what's going to happen between Canada and the U.S.,' Breton told National Post in an interview Thursday. Article content Article content 'Lowering the targets between now and 2030 would be a reasonable path.' Article content With Conservative Leader Pierre Poilievre ratcheting up his efforts in demanding that the mandate be scrapped, arguing it removes 'choice' from consumers, Breton, a former Quebec environment minister, says the risk of not making short-term adjustments at the federal level is that, 'this is going to become a political hot potato.' 'Like the carbon tax was.' The consumer carbon tax was a signature climate policy of the Liberals until March, when Prime Minister Mark Carney cancelled it, saying it had become 'too divisive.' That followed a years-long campaign by Poilievre, who criss-crossed the country, promising to 'axe the tax,' blaming it for forcing consumers to pay additional costs amid a cost-of-living crisis. Article content Article content Breton, whose association represents 180 members in the electric transportation industry, including those who sell electric cars, says 'we have to find a pathway' that will allow people and those in the traditional automotive industry to buy credits and 'ease into this regulation.' Article content A credit system is at the heart of the federal policy, which the Liberals finalized in 2023 as part of their plan to reduce Canada's overall greenhouse gas emissions, taking aim at the transportation sector, one of the top emitters. Article content The government says manufacturers can earn credits by either selling or making zero-emission vehicles, which Ottawa defines as either a battery-powered vehicle or a plug-in hybrid, or by purchasing credits from an electric vehicle maker, or putting money towards building out charging infrastructure. Article content Companies that fail to comply could face penalties under the Canadian Environmental Protection Act.