Canada is investing more than $100 million in its EV infrastructure during the next two years.
Under its new Prime Minister Justin Trudeau, Canada is looking for ways to increase the sales of electric vehicles to help with the nation’s commitment to fight global warming.
“We believe that a strong commitment to the development of alternative transportation fuel infrastructure, coupled with electric vehicle (EV) incentives offered on a provincial level, will continue to support the adoption of clean technology vehicles in Canada as widespread charging infrastructure and price-competitive EVs help attract consumers to the market,” BMI Research said in a new report.
The Canadian government’s 2016 Budget proposes to provide 62.5 million Canadian dollars during the next over the next two years to Natural Resources Canada in order to support the deployment of infrastructure for alternative transportation fuels, including charging infrastructure for EVs and natural gas and hydrogen re-fueling stations.
Canada currently has more than 430 EV charging stations nationwide, and we believe that continued investment in infrastructure will support the adoption of alternative fuel vehicles by helping to address range anxiety fears posed by consumers when deciding to purchase EVs, BMI noted.
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The number of EVs in Canada grew by more than 80% last year and nearly every manufacturer with a road-ready model, including BMW, Ford, Nissan, Kia, Hyundai, smart, Toyota, General Motors, Porsche, Tesla and McClaren, have electric vehicles for sale in Canada. Renault is also planning to put its newest EV, the Twizy, on sale this spring.
BMI said as of December 2015, there were 18,451 EVs in Canada, up from around 10,660 EVs at year-end 2014, and it expects the alternative fuel vehicle fleet to increase during the next five years, with the support of budget plans and incentive-lead growth in key markets such as Quebec and Ontario, which respectively account for 46% and 32% of the entire Canadian EV fleet.
The provincial governments in Ontario and Quebec where hydro-electric is relatively cheap offer have offered major incentives to EV buyers in recent years.
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The Trudeau government is planning to increase tax support to businesses planning to invest in EV charging and electricity storage by expanding eligibility for accelerated capital cost allowance rates. This will provide incentives to business to investment in on-premises charging infrastructure, making it more convenient for consumers.
Furthermore, in the 2016 Budget it is also proposed that 56.9 million Canadian dollars will be invested this year and next in Transport Canada and Environment and Climate Change Canada to support the transition towards a cleaner transportation sector, through the development of regulations and standards for clean transportation technology.
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The transportation sector is the country’s second-largest greenhouse gas emitter and the government’s commitment to a cleaner transportation network will be a positive step towards Canada’s goal of reducing greenhouse gas emissions by 30% below 2005 levels by 2030.