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Quebec passes bold environmentally-conscious auto legislation

January 23rd, 2017  |  Canadian Business

This week, Quebec positioned itself as a leader in the movement towards environmentally-conscious driving. Yet many within the province say it is moving at an unrealistic speed.

That criticism comes in response to the Quebec government's announcement that, beginning in 2018, it will be introducing legislation requiring automakers to have at least 3.5 per cent of their car sales come from either electric, plug-in hybrid, or hydrogen fuel-cell vehicles. In 2025 that figure will reportedly rise to 15.5 per cent.

Should automakers fail to meet that target, they will be forced to buy credits from other companies that do, further incentivizing compliance. No other province in Canada currently has or has plans to enact this kind of legislation. However, 10 American states have similar requirements.

Carmakers within Quebec worry that they will be unable to meet the government's demands. The vehicles it is calling for them to sell only account for 0.5 per cent of all auto sales presently. They have argued that not only are the regulations unfair, they are unnecessary, as statistics show that these vehicles have been naturally integrating into the market and will continue to do so at a greater pace with or without regulation.

Nissan Canada president Joni Paiva took a different stance and said it forces automakers to "walk the talk." His company's full-electric Leaf car accounted for 2.4 per cent of all Nissan sales in Quebec last year. It also has a partnership with Hydro Quebec in which it covers a significant portion of the cost for 26 of the province's quick charging stations.

One factor that could drive up sales to compliance levels is that the province of Quebec offers several rebate deals for different environmentally-conscious car systems. All-electric cars are eligible for $8,000, hybrids can command anywhere from $500 to $8,000 depending on vehicle type, and low-speed EVs receive $1,000.