Quebec budget: several worrying signals for the fight against climate change and jobs in transportation electrification
March 13, 2024
Quebec is missing an important opportunity to accelerate the transition to electric vehicles.
Upon reading the Quebec government’s budget, Electric Mobility Canada (EMC) is concerned that while it has confirmed that it will invest in the installation of charging infrastructures across the province, no details have been released 6 months after the government unveiled its charging strategy. What’s more, by deciding to end the rebate on the purchase of electric vehicles (EVs), Quebec is missing an important opportunity to accelerate the transition to electric vehicles. Today, the Quebec government has announced that as of January 2025, the rebate on EVs will drop from $7,000 to $4,000, then in 2026, from $4,000 to $2,000, and finally, as of 2027, the rebate will be completely eliminated.
For years, EMC has been recommending that, rather than reducing or eliminating the rebate, the Quebec government introduce a feebate system on gas-guzzlers to generate revenue to finance rebates for the purchase of electric cars. The advantages of introducing a feebate system are threefold:
1) On the one hand, we continue to accelerate sales of electric vehicles through rebates;
2) On the other hand, we’re starting to slow the sale of gas-guzzlers by introducing a fee on the purchase of such vehicles;
3) Finally, this is a fiscally-neutral program, in other words, with no impact on the funds used to accelerate emissions reductions. It would be THE most economically efficient measure for reducing GHGs, at a cost of around $0/tonne.
It makes no sense for the government to slow down sales of electric vehicles with this program termination, while leaving the sale of gas-guzzlers untouched. It is worth noting that GHG emissions from light trucks increased by 130.5% between 1990 and 2021. EMC believes that this is a missed opportunity and that it risks having a negative impact on electric vehicle sales and the fight against climate change.
The $672.9 million allocated to improving mobility and electrifying public transit is good news, however.
We deplore the fact that the government has not clearly indicated that it intends to extend important programs for the electrification of medium- and heavy-duty transportation, such as Écocamionnage and the electrification of school buses.
“The Quebec government, which up until now had shown leadership in the electrification of transportation, seems to be taking a step back that could have a significant impact on the energy transition and jobs in this sector. We are concerned about the impact this signal could have on businesses, municipalities and other governments across Canada”, stated Daniel Breton, President and CEO, Electric Mobility Canada.
Finally, EMC doesn’t understand why the government isn’t supporting the transition to electric off-road vehicles, considering how disproportionately polluting they are, and that Quebec manufacturers are offering solutions. Such support would not only have helped reduce air pollution and GHG emissions, but would also, for a modest sum, have helped create jobs in this sector.