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Cap And Trade

Published on May 20th, 2016 | by James Ayre


Ontario Plans Big New EV Incentives & Targets

May 20th, 2016 by  

The Ontario government is now aiming to grow the new-vehicle market share held by electric vehicles to 5% by the year 2020, and 12% by 2025, according to recent reports.

The new targets are part of the Canadian province’s new 4-year, CAD$7 billion climate change plan. The plans will see CAD$285 million invested into electric vehicle incentives; the implementation of new “low-carbon” fuel standards; and the investment of CAD$280 million into the electrification of school buses + the adoption of “lower-carbon” trucks in the trucking industry (liquid natural gas fueling trucks and stations, etc).

Ontario flag

These new plans were revealed in an, apparently leaked, confidential 57-page Climate Change Action Plan obtained and detailed by The Globe and Mail. The 4-year plans discussed relate to the strategy for the years of 2017 through 2021. 80 different policies and 32 different actions are outlined by the document.

Public release of the document is expected sometime in June, reportedly, pending a review of the strategies outlined by cabinet ministers. Further fine-tuning before public release is expected.

The electric vehicle incentives mentioned above would include a rebate of up to CAD$14,000 ($10,800); an exemption from the provincial portion of the harmonized sales tax (HST); and an additional subsidy for low- and moderate-income households intended to spur those with old, heavily polluting cars to switch to an electric.

Free overnight electricity for those charging electric vehicles is also discussed. In addition, so is a rebate of up to CAD$1,000 ($770) for the installation of a home charging system; as well as a charging station buildout at government buildings; and a possible mandate for charging plugs on all new buildings.

The Globe and Mail provides a bit more:

The electric vehicle targets represent a sea change for the province’s CAD$16-billion auto sector. The 2025 goal would boost to about 86,000 the number of annual electric vehicle sales, more than 20 times the number of electric vehicles sold in the province so far this century.

…The actions expected to cause the largest emissions cuts by 2020 are moving buildings and the electricity system off natural gas (3 million tonnes); programs to make industry more energy efficient (2.5 million tonnes); the low-carbon fuel standard (2 million tonnes); the renewable content requirement for natural gas (1 million tonnes); and switching trucks and buses to liquefied natural gas and electricity (400,000 tonnes).

The new programs will be funded by Ontario’s approaching cap-and-trade program, reportedly.

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About the Author

's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy. You can follow his work on Google+.

  • Kraylin

    A large part of the funds for this program will come from another 4.9c/litre gas tax bringing the total taxes on our gasoline to almost 40%… Further proof the US is WAY behind on taxing gasoline for the “greater good”… Amazing how complacent we are as Canadians… taxed to death. I am fortunate enough to be able to “afford” the extra taxes but many people are not so fortunate…

    Just for comparison our gas prices sit at the equivalent of $4.40/USgallon

  • Jouni Valkonen

    EV subsidies are bad. it is better to enforce car manufacturers to sell electric cars if they wish to sell also polluting cars. In 2020, 5 % cars that Toyota sells, should be all electric, if Toyota wants to do business in Ontario. This way there is no tax payer money required, but the car companies need to cary the burden of polluting.

    And of course, if Toyota wants to sell electric cars profitably, it must also invest on Ontario wide charging infrastructure and offer free home charger together with electric car.

    • Bob_Wallace

      EV subsidies have helped build up volume to the point at which battery prices are heading down.

      I’d call that a success.

      • Jouni Valkonen

        no, it was catastrophic failure. Subsidies went into profit margins of Nissan and few others, but it did not push electric car technology forwards. Tesla is introducing incrementally new improvments, but Nissan Leaf has remained essentially the same since 2010. Seen only minor upgrades. For example Leaf still lacks AWD! Nissan has just relayed on subsidies and is strickly refusing to sell no more electric cars than what it can get subsidies.

        Imagine that instead of subsidies, we would have global quatas for electric cars, similarly as in California. We could today have global 10 million electric car markets without single tax payer dollar spent on subsidies, if car companies had been forced to sell electric cars.

        Today about 15 % of all new cars could be all electric, if car companies had been forced to sell electric cars. and if they fail to sell electric cars, then they are punished by negative incentives.

  • Bob_Wallace

    90 million cars manufactured globally per year.

    Five percent would be 4,500,000. Tesla, right now, is projecting under 1,000,000 by 2020.

    Fifty percent would be 45 million. That would take 90 Gigafactory’s worth of battery manufacturing capacity. It’s technologically possible but we’ve yet to see that sort of commitment out of car manufacturers that would start a massive buildup of battery manufacturing.

    • Jouni Valkonen

      If there are 10 000 dollar incentives in Ontario, for sure Tesla will prioritize Ontario and about 50 % of all new cars that are sold in Ontario on 2020, will be Teslas.

    • Matjaž Ciglar

      This article is about Ontario and not whole world and this is a big difference!

      • Bob_Wallace

        Then why did you link an article about the whole world?

  • Kevin McKinney

    Just to dramatize the distance to go, though, compare the target of 86,000 EVs to the ~7.7 million cars on Ontario roads. I hope that we’ll get far more than 12% of new vehicle sales by 2025, in Ontario and elsewhere!

    I’m tempted to call the targets far too ‘reasonable’–though they are, to be sure, welcome.

    • newnodm

      Apparently Ontario plans on buying the entire EV output of the world less China. Good work Canadians! Although I will disappointed to not receive my model 3. Treat her well, Canada.

  • WebUserAtLarge

    Hope the rest of the provinces follow suit. At CAD$14,000 little helper + ~$1000 for a charger how does one not buy an EV…

  • Steve Grinwis

    The rebates in question are already in effect…

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