Environment Canada Looking Into ‘Cost of Ownership’ of Electric Vehicles

An electric vehicle is charged in Ottawa on July 13, 2022. (The Canadian Press/Sean Kilpatrick)

The Environment Department is now conducting research into the cost of owning an electric vehicle, according to federal documents, a year after mandating 100 percent electric car sales in the country by 2035.

A document titled “Total Cost of Ownership for Light Duty Vehicles in Canada,” [pdf] posted on the Government of Canada website on Dec. 2, 2022, said, “Environment and Climate Change Canada (ECCC) is seeking information on the current and projected total cost of light duty vehicle (LDV) ownership in Canada.”

The document, first reported on by Blacklock’s Reporter, said the study will “highlight the key lifetime cost differences between light duty vehicle market segments.”

“The study will inform ECCC’s development of regulations to reduce emissions from light-duty vehicles and accelerate the transition to zero-emission vehicles,” said the document.

Federal Cabinet ministers announced in June 2021 that the government is setting a mandatory target for all new light-duty cars and passenger truck sales to be zero-emissions by 2035, accelerating its previous goal of 100 percent sales by 2040.

The target for the electric vehicle transition is part of the federal Emissions Reduction Plan that aims to cut greenhouse gas emissions by 40 percent below the 2005 levels by 2030, the document said. To meet the target of 100 percent electric car sales by 2035, an interim target of at least 20 percent is set for 2026, and 60 percent by 2030.

Data show that few Canadians currently drive electric vehicles, or what is dubbed zero-emissions vehicles (ZEVs).

Light-duty vehicles (LDVs) accounted for 9 out of every 10 motor vehicles registered in 2021, according to data released by Statistics Canada on Dec. 1. Among the 24.1 million registered LDVs in Canada last year, 94.9 percent were motor gasoline, while 303,073 were hybrid electric vehicles, 152,685 were battery electric vehicles, and 95,896 plug-in electric vehicles.

‘A Wide Range of Concerns’

Privy Council Office in-house research shows the proposed ban on new sales of conventional gasoline vehicles is unpopular among Canadians, according to documents obtained by Blacklock’s.

“Participants expressed a wide range of concerns related to consumer costs, vehicle functionality and personal choice and freedom primarily as well as the possibility this policy could result in unethical business practices or negative impacts on the oil and gas industry in Canada,” said a Feb. 25 survey Continuous Qualitative Data Collection of Canadians’ Views, as reported by Blacklock’s.

The House environment committee has also acknowledged that electric vehicles remain too costly for most Canadian drivers in its 2021 report, titled “The Road Ahead: Encouraging The Production And Purchase Of Zero Emission Vehicles In Canada.”

“The relatively higher purchase price of ZEVs, relative to conventional vehicles, makes it harder for some Canadians to afford them,” said the report.

The report cited a written brief to the committee from Toyota Canada Inc., which said that the average 2019 purchase price of a conventional sedan in Canada was $28,000, while the price of a ZEV sedan was around $56,000 before a $5,000 federal rebate.

“Witnesses agreed that higher battery costs were the main cause of the higher price of ZEVs,” the report said. “They also agreed that these costs will come down as battery technology advances.”

“However, there were different estimates as to when this might happen.”