Derek Hermanutz
Director General, Economic Analysis Directorate, Department of the Environment
Opening remarks
Yes, that's fine.
Meeting 12 · November 3, 2025 · 11:03–14:06 (3h 3m)
45-13 witnesses · 272 interventions · 14,864 words
The committee studied the electric vehicle availability standard (EVAS) and heard from three Department of the Environment officials: Derek Hermanutz, Director General of Economic Analysis; Megan Nichols, Assistant Deputy Minister of Environmental Protection; and Mark Cauchi, Director General of Energy and Transportation.
Megan Nichols explained that transportation is Canada's second-highest emitting sector and that the EVAS, finalized in December 2023, aims to reduce greenhouse gas emissions by ensuring a growing supply of zero-emission vehicles. She noted that the standard is projected to bring cumulative GHG reductions of 362 megatonnes between 2026 and 2050, along with health benefits and cost savings for Canadians, including lower maintenance and fuel costs. She emphasized that the government is conducting a 60-day review, announced September 5, 2025, to ensure the standard reflects market realities and does not unduly burden automakers, and that the 2026 compliance obligations have been removed.
Mark Cauchi detailed how the EVAS works, setting annual sales requirements starting at 20% by 2026 and reaching 100% by 2035, with compliance flexibilities including early action credits, credit carry-forwards, plug-in hybrid credits, and investments in fast-charging infrastructure. He noted that other jurisdictions like the EU, UK, and 11 U.S. states have similar targets, and that the review is considering potential amendments to targets and additional flexibilities. He disagreed with the characterization of a $20,000 tax, stating that automakers have multiple compliance options and that the credit market involves private transactions.
Derek Hermanutz provided economic context, noting that the EVAS is projected to save Canadians $36.7 billion in energy costs between now and 2050, though he acknowledged that analysis on health care costs and premature deaths from repealing the standard was not specifically conducted for these regulations. He committed to providing further data to the committee.
The committee also debated procedural motions. A motion was adopted to invite Minister Julie Dabrusin to appear for two hours to discuss her mandate and priorities, including supplementary estimates B. A separate motion was adopted to invite the Impact Assessment Agency of Canada, the Montreal Port Authority, the Office of Public Hearings on the Environment, and Dawn Farrell of the Major Projects Office to testify about the Port of Montreal's Contrecœur expansion project and its impact on the copper redhorse, with the meeting to be held no later than November 17, 2025.
AI-generated summary — may contain errors; verify against the official evidence.
Derek Hermanutz
Director General, Economic Analysis Directorate, Department of the Environment
Opening remarks
Yes, that's fine.
Megan Nichols
Assistant Deputy Minister, Environmental Protection Branch, Department of the Environment
Opening remarks
Thank you very much, Mr. Chair. My name is Megan Nichols. I am the assistant deputy minister of the environmental protection branch at Environment and Climate Change Canada. I'm pleased to be here today to provide a technical briefing on the electric vehicle availability standard and to answer any questions that the committee members may have to help inform their upcoming study. I'm joined today by Mark Cauchi, director general of energy and transportation at ECCC, as well as Derek Hermanutz, the director general of economic analysis at ECCC. In our opening remarks, we will provide an overview of the purpose of the electric vehicle availability standard, how it works and the review that is currently under way. I'll start by saying that from a climate change perspective, transportation is Canada's second-highest emitting sector, and a net-zero future will require a transition to zero-emission vehicles over time. Transportation emissions in Canada represented 27% of all GHG emissions in 2023, with light-duty vehicles representing close to half of those sector emissions. We have seen improvements overall in GHG performance from passenger cars and light trucks since 2019. Some…
Mark Cauchi
Director General, Energy and Transportation, Department of the Environment
Opening remarks
Thank you, Megan. The EVAS requirements were implemented through amendments to Canada's existing greenhouse gas regulations for passenger cars and light trucks, which were originally published in 2010. The regulations were implemented under existing authorities set out in the Canadian Environmental Protection Act, 1999. The EVAS sets annual EV sales requirements, starting at 20% by 2026 and growing to 60% by 2030, then 100% by 2035. Canada is not the only country to have EV targets. Other jurisdictions outside—and inside—Canada also have targets. In the U.S., 11 state governments, representing 40% of the North American auto market, have EV targets and measures. The United Kingdom, the European Union and those 11 U.S. states, including California, New York and Washington state, have adopted targets of 100% EV sales by 2035. China also adopted a lower target, 20% EV sales by 2020, which has already been surpassed. Over 50% of vehicle sales in China are now electric vehicles. Norway will likely be the first country to achieve its world-leading target of 100% EV sales by 2025. Ethiopia was the first country to disallow the import of all gas-powered vehicles in 2024. In Canada,…
Sarah YakobowskiCommittee staff
Committee Researcher
Opening remarks
Mr. Chair, thank you for the opportunity to address the committee. We work at the will of the committee and are grateful for a chance to quickly outline an approach to report drafting that has worked well for this committee. Now that the testimony has concluded for the emissions reduction plan study, we assume the committee would like a report to be drafted. Members can now guide the preparation of the report that will be tabled in the House. As Mr. Iacono mentioned, there was an email sent from the clerk. The type of drafting instructions—they're typically offered verbally—would be topics to emphasize in the report, particular witnesses or briefs that members would like reflected, and then recommendations, which are typically directed to the Government of Canada.