The committee was studying the Government of Canada's automotive strategy and its approach to reducing emissions in the transportation sector. Appearing were Benoit Tessier from the Department of Industry, Mark Cauchi from the Department of the Environment, and Anna van der Kamp from the Department of Natural Resources.
Benoit Tessier outlined the government's automotive strategy, which includes up to $3 billion through a strategic response fund and up to $100 million for small and medium-sized enterprises to support the sector amid trade disruptions. He noted the government will introduce new Canada-specific greenhouse gas emissions standards for light-duty vehicles for model years 2027 to 2032 and repeal the electric vehicle availability standard, while launching a five-year electric vehicle affordability program with rebates of up to $5,000 and a $1.5-billion investment in charging infrastructure through the Canada Infrastructure Bank.
Mark Cauchi explained that the government is repealing the electric vehicle availability standard and strengthening a technology-neutral, performance-based greenhouse gas standard, which he said is not a retreat from climate ambition. He stated the approach sets Canada on a path toward approximately 75% electric vehicle sales by 2035 and an aspirational 90% by 2040, and that the new standard will drive increased zero-emission vehicle sales while giving industry flexibility, with emissions reductions being non-negotiable. He disagreed with suggestions that the new policy is a rebranded mandate, emphasizing it is not a sales mandate, and noted that modelling indicates the approach will achieve more than 300 million megatonnes in cumulative reductions by 2050.
Anna van der Kamp discussed charging infrastructure, noting that 80% to 90% of charging needs can be met by home level 2 charging, which costs about $700 annually compared to over $3,000 for gasoline. She highlighted gaps in urban areas with high-density housing and remote corridors, and said the government is developing a national charging infrastructure strategy to address barriers and attract private investment. She noted that the zero emission vehicle infrastructure program has supported about 54,000 chargers, with almost half for multi-unit residential buildings, and that funding for that program continues until the end of the fiscal year with no commitment beyond that.
During questions, Mark Cauchi confirmed that the electric vehicle availability standard has not been legally repealed yet but is in the process, and that the new regulations will be published by the end of the year. He said the government considered factors like pricing and vehicle price parity in shifting from the previous 100% target, and that the new approach will allow internal combustion engine vehicles and hybrids to still be sold. He also noted that the government's modelling and cost-benefit analysis will be published in the Canada Gazette later this year. Anna van der Kamp said a study on grid demand from charging is just beginning and will be completed by the end of the year. Benoit Tessier confirmed that under a recent agreement with China, 49,000 EVs will be allowed into Canada, with 50% expected to be priced below $35,000. The committee agreed to send written questions to Transport Canada for responses to be included in the study.
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