World News

Proposed Electric Vehicle Mandate Will Cost at Least $99 Billion: Environment Canada

Distressed Patriotic Flag Unisex T-Shirt - Celebrate Comfort and Country $11.29 USD Get it here>>


A recently proposed federal mandate that would require all vehicles sold in Canada to be electric by the year 2035 will cost at least $99 billion, according to new government figures.

“The proposed amendments are expected to lead to a loss of consumer choice as the non-zero emission vehicles which are preferred by some will eventually be phased out of the light duty vehicle market,” wrote Environment Minister Steven Guilbeault’s department in a regulatory notice on Dec. 31, according to Blacklock’s Reporter.

Environment and Climate Change Canada added that zero-emission cars generally are more expensive than gas- or diesel-powered equivalents, and the all-around price increase “could lead to a reduction in the quantity of vehicles purchased.”

“The magnitude of these consumer welfare losses is difficult to estimate,” staff wrote.

Guilbeault announced a number of proposed regulations on Dec. 21 that, if finalized by cabinet without revision, would mandate one-fifth of new vehicles sold in Canada to be electric by 2026.

By 2030, that number would increase to 60 percent of new vehicles sold before jumping up to 100 percent by 2035.

Guilbeault’s department provided a rough breakdown of the $99 billion figure in its notice.

Close to $56 billion of the cost would come from “total increased electricity costs over the time frame,” while the price of electric vehicles (EVs) and home charging would be around $24.5 billion.

A total of $16 billion would go toward federal subsidies for vehicle and battery manufacturers, while around $2 billion would be spent on rebates for Canadians who buy EVs between 2023 and 2025.

Other costs, each below $1 billion, would go toward federal subsidies for the creation of more public EV charging stations.

Other Costs

The $99.4 billion overall price tag does not include possibly related expenses, such as costs of “retraining mechanics” who specialize in repairing non-electric vehicles only and also of higher insurance prices for EV accidents because they “tend to be heavier due to the weight of batteries on board.”

Guilbeault’s department also did not account for the cost to homeowners who will have to buy home-charging stations should they buy EVs.

“Installation costs have not been accounted for in this analysis and may be underestimated,” the notice states.

“There is an urgent need to address climate change and move towards a low carbon economy. Greenhouse gases are primary contributors to climate change and the transportation sector accounts for 25 percent of domestic greenhouse gas emissions in Canada.”

The government has committed to funding 50,000 more public charging stations across the country, which will bring the number of total government-paid charging stations by 2027 up to 85,000.

Ottawa has spent $1 billion since 2016 installing a nationwide network of EV charging stations.

Tara MacIsaac contributed to this report.  

Peter Wilson

Peter Wilson is a reporter based in Ontario, Canada.



Source link

TruthUSA

I'm TruthUSA, the author behind TruthUSA News Hub located at https://truthusa.us/. With our One Story at a Time," my aim is to provide you with unbiased and comprehensive news coverage. I dive deep into the latest happenings in the US and global events, and bring you objective stories sourced from reputable sources. My goal is to keep you informed and enlightened, ensuring you have access to the truth. Stay tuned to TruthUSA News Hub to discover the reality behind the headlines and gain a well-rounded perspective on the world.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.