The federal government has started to give away money to encourage people to buy electric cars, but before long it will have to decide how far it will go to force the market towards lower-emission vehicles.
The electric vehicle rebate program launched May 1, giving up to $5,000 back to buyers to help them afford zero-emission vehicles which have higher up-front costs but long-term financial and environmental benefits.
Ottawa, however, is still thinking about whether it will stick with ambitious future emission standards, which would potentially add up-front costs to all vehicles sold in Canada with the promise of lower emissions and long-term costs.
A decision is needed because the U.S. Trump Administration has said the requirements are too stringent and will be lowering them.
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Canada has matched U.S. standards since 2011, and will have to decide whether to match new U.S. requirements expected to be announced in late spring or early summer, or to align itself with California and other states that have vowed to maintain the current standards.
Canadasa国际传媒檚 auto industry has urged the government not to create separate emission standards for Canada and the U.S., while environmental groups say maintaining the current regime is crucial to meeting climate change targets.
The federal government is still in consultations, but it says it is open to following California in maintaining the current standards.
sa国际传媒淐anada is looking at following the actions of California and other like-minded U.S. states as we move forward on Canadasa国际传媒檚 mid-term evaluation,sa国际传媒� Environment and Climate Change spokesman Mark Johnson wrote in an email.
sa国际传媒淐lean cars are a key part of Canadasa国际传媒檚 climate plan to fight climate change,sa国际传媒� he said.
A decision on whether to maintain the standards, which call for making cars about five per cent more efficient per year, and light trucks 3.5 per cent and later five per cent per year, will come as Canadians increasingly buy larger, heavier vehicles.
The trend towards SUVs, crossovers and pickups that make up the light truck category has helped make Canadasa国际传媒檚 2017 vehicle fleet the most fuel hungry per kilometre in the world, according to the International Energy Agency.
It found Canadian vehicles sold in 2017 consumed an average of 8.9 litres for every hundred kilometres, ahead of the 8.6 litres per kilometre in the U.S., 7.9 in Australia, and about 5.4 in France, Turkey, and India.
Since existing regulations will increase stringencies on light trucks, itsa国际传媒檚 crucial that Canada keeps the current standards in place, said Annie Berube, director of government relations at environmental group Equiterre.
sa国际传媒淭he bulk of the emissions reductions that wesa国际传媒檙e getting from those vehicle regulations are from models years 2020 going forward, because of specific technological developments and because the regulations are getting a lot more stringent.sa国际传媒�
The shift to bigger vehicles has, however, made it harder for auto companies to meet the increasing standards, which are based on the average of everything they sell.
Industry is pushing for an easing of regulations, but is still committed to continued improvement, said Mark Nantais, president of the Canadian Vehicle Manufacturerssa国际传媒� Association.
sa国际传媒淭he industry is still looking for year-over-year improvement, and the question is just whether the slope of that line will be as steep as it was,sa国际传媒� Nantais said.
He said member companies, which includes Ford, General Motors, and Fiat Chrysler Automobiles, believe the higher up-front costs of lower-emission vehicles would actually slow uptake of new vehicles that are already more efficient.
sa国际传媒淭he single-most cost effective and greatest way to reduce GHG emissions is actually to accelerate fleet turnover,sa国际传媒� said Nantais.
But as vehicles become more durable, which allow people to hold on to them longer, itsa国际传媒檚 especially important to ensure significant improvements are maintained, said Berube.
sa国际传媒淯nless that regulation is there to ensure that the next model year is even more fuel efficient, wesa国际传媒檙e going to be missing in terms of big emissions gains from the fleet turnover that happens naturally as people replace their older vehicles.sa国际传媒�
But unlike California, Canada has an auto manufacturing base it must also consider.
If the higher standards are maintained, industry has said that companies may have to stop selling some less-efficient vehicles in Canada to meet the averaged standard.
Reducing options for manufacturers could affect production decisions, said Flavio Volpe, president of the Automotive Parts Manufacturersa国际传媒檚 Association.
sa国际传媒淚f you undercut the build where you sell proposition, maybe they donsa国际传媒檛 build here.sa国际传媒�
He said the association advocates to go with the critical mass that best aligns with the product mix manufactured in Canada.
Itsa国际传媒檚 not yet clear which way Canada will go on the standards, but with such a complicated file and wide-reaching implications, Volpe said he appreciates that the government is committed to thorough consultations.
sa国际传媒淚 think theysa国际传媒檙e being cautious, rightfully so.sa国际传媒�
Ian Bickis, The Canadian Press
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