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Debunking auto industry lobbyists in their war against ZEVs

Consumers don't mind having access to an increasing number of elecrtric vehicles. Photo by Gustavo Fring/Pexels

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Environment and Climate Change Minister Steven Guilbeault is expected to soon finalize Canada's regulation for gradually phasing out the sale of new gasoline cars by 2035. Given that vehicles typically last for 15 years on the road, this policy is absolutely essential to achieve net-zero carbon emissions by 2050.

Auto industry lobbyists are fighting hard against this zero-emission vehicle (ZEV) regulation by making all sorts of outlandish claims.

They must be debunked.

Canada adopts by reference the fuel economy rules that are written in Washington, D.C., by the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration instead of writing our own rules. Because of this, Canada was recently forced to roll back our tailpipe emissions standards after Donald Trump did so when he was the U.S. president.

The auto lobby claims there will be “dire economic consequences” from disrupting regulatory alignment with the United States. This is false. Adopting a ZEV-specific regulation does not eliminate existing regulatory alignment with the U.S. on tailpipe emissions standards. This separate ZEV rule already exists in British Columbia and Quebec and neither of those provinces has faced an economic cataclysm. Instead, they are actually far outpacing the rest of the country in ZEV sales.

Canadians don’t feel oppressed by auto manufacturers having to meet requirements for seatbelts, airbags or catalytic converters. Why would a requirement to have batteries instead of engines be any different? asks @ClimateNate #cdnpoli

Having our own ZEV-specific rule gives Canada an “insurance policy” by allowing Canada to independently meet ZEV adoption targets regardless of the outcome of future U.S. presidential elections or potential actions by the U.S. Supreme Court to strike down the EPA’s recently proposed strengthening of tailpipe emissions standards. This is particularly important given that the Republican-controlled Supreme Court is already defanging the EPA’s ability to regulate carbon emissions from power plants.

Canada has more ambitious goals for ZEV adoption than the United States, targeting 100 per cent of new car sales by 2035, which is aligned with other subnational North American jurisdictions and global partners such as the U.K., the European Union and the Accelerating to Zero Coalition of countries.

We don’t know what the U.S. hopes for 2035 because its draft tailpipe emissions rules recently proposed by President Joe Biden only go so far as aiming for 67 per cent of sales by 2032. Far from breaking with the U.S., a ZEV-specific regulation would align Canada with California and 15 other U.S. states that follow California's ZEV rule — covering 43 per cent of the North American auto market.

The irony is that while auto industry lobbyists are telling the Canadian government to stop plans to regulate ZEV supply in favour of simply following the U.S. tailpipe rules, they are also lobbying the U.S. government to scrap a strengthening of those rules.

Auto lobbyists like to claim that Canada’s proposed ZEV regulation is imposed on consumers rather than automakers and is somehow akin to a quasi-dictatorial limitation of consumer choice. But Canadians don’t feel particularly oppressed by auto manufacturers having to meet requirements for seatbelts, airbags or catalytic converters. Why would a requirement to have batteries instead of engines be any different?

The reality is automakers want to delay the transition to ZEVs because they make more profits from selling gas-guzzling SUVs and pickup trucks. Moreover, the “Big Three” North American automakers have carved out loopholes in the U.S. tailpipe rules that allow them to evade reducing emissions if they sell fewer cars and more SUVs and trucks. This is exactly what they have done, with the sales share of these kinds of fuel-inefficient vehicles in Canada steadily climbing from 55 per cent in 2010 to 86 per cent this year.

The International Energy Agency estimates that 40 per cent of the emissions reductions from increased fuel efficiency in the United States from 2010 to 2019 have been cancelled out from the growth in the size and weight of vehicles associated with this trend.

The failure of the U.S. tailpipe emissions rules to meaningfully reduce carbon emissions is why a new regulation requiring automakers to make the switch to ZEVs is so important. Canadian federal regulators estimate this policy will reduce carbon emissions by 430 million tonnes by 2050. To put that in perspective, this is equivalent to 73,000 Olympic-size swimming pools full of gasoline not burned.

Given the shortage of ZEVs and the long wait times for buyers, it is only right for Canadians to be the first in line to buy the cars our taxpayer dollars are paying to help make, rather than those vehicles being shipped overseas where supply requirements are stronger.

Auto industry lobbyists seem to only want the hefty industrial subsidies for manufacturing ZEVs, but don’t want to take any of the associated responsibility of actually reducing their fleet emissions in line with climate targets. A ZEV sales regulation is the only way to ensure that automakers that pledge to clean up their act actually follow through with their promises instead of taking our money and running.

Nate Wallace is the clean transportation program manager at Environmental Defence.

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