ZEV adoption requires ongoing support from senior levels of government
In recent years, both the federal and provincial governments have invested significant time and political capital to advance clean energy and sustainability programs.
This includes a range of initiatives aimed at reducing greenhouse gas emissions and promoting the adoption of zero-emission vehicles (ZEVs).
Their actions in recent months, however, have certainly raised questions about their long-term commitment to incentive programs that support the ongoing adoption of electric vehicles.
The New Car Dealers Association of BC (NCDA) has been proud to deliver the CleanBC Go Electric Passenger Vehicle Rebate Program since 2011 — in partnership with the provincial government and most recently BC Hydro.
The results have been significant, as ZEVs represented almost 23 per cent of all new light duty vehicle sales last year, leading the nation on a per capita basis.
In the first quarter of 2024, the trend continued with ZEVs representing 22 per cent of the light vehicle market share. Today, there are more than 155,000 ZEVs travelling BC highways.
Affordability and climate change are top of mind among British Columbians and Canadians — and the focus should be on strengthening the incentive program.
The provincial government, however, recently announced a reduction in the threshold in the qualifying new car category while also moving SUVs and vans to the car category. In one fell swoop, it removed 75 per cent of vehicles eligible for a provincial rebate from the program.
Our collective success has been the result of what we refer to as a three-legged stool with the three key components being point of purchase rebates, convenient and reliable access to fast charging infrastructure where people live, work and socialize, and educating consumers about the latest features and technology so they can arrive at a vehicle that best meets their personal needs.
The government has effectively cut off one of those legs and the proverbial stool is at a tipping point.
At the federal level, after much waiting, uncertainty, and a failure to commit to incentives beyond 2025, the recent federal budget provided relief by extending the Incentives for Zero-Emission Vehicles (iZEV) Program for an additional two years. But it shouldn’t come because of public pressure if Ottawa is truly committed to an environmental agenda.
Much like the BC rebate program, the federal iZEV program has been a critical driver for EV sales across Canada, providing essential financial support to consumers looking to make the switch to zero-emission vehicles.
Since its launch in 2019, ZEVs have grown as a share of all new-vehicle sales from 3 per cent to 11 per cent in 2023, and more than 450,000 ZEVs have been purchased or leased under the program.
At a time when there is a noted softening in demand for zero emission vehicles, the lack of certainty and an ad hoc approach is problematic for our industry but notably for consumers.
For example, Québec’s recent draft legislation aims to ban ICE and plug-in hybrids by 2035, the strictest in Canada, which “…goes well beyond what is needed, and what the market for EVs will support,” said Tim Reuss, CADA’s President and CEO. “CADA, and our provincial dealer associations will be expressing our deep concerns with this flawed direction as part of our official response to this proposed legislation.”
Affordability and climate change are top of mind among British Columbians and Canadians — and the focus should be on strengthening the incentive program — at least until there’s more price parity between ZEVs and internal combustible vehicles.
Similarly, if government is truly committed to meeting its climate change objectives, it needs to show leadership by helping dealers and manufacturers build momentum and assist consumers to make the transition to clean energy vehicles.
