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Transportation

Transportation accounts for 29% of total energy consumption in Canada and stands to deliver 26% of the country’s potential energy savings by 2050. Achieving these savings would avert the release of 1.5 gigatons of GHG emissions through 2050, or one-third of the total potential emissions reductions.

Light-duty passenger vehicles account for 60% of Canada’s transport energy demand. While several current and possible future policies and initiatives could improve passenger vehicle energy efficiency, electrification of personal transport will play a particularly important role. According to the U.S. Department of Energy, electric vehicles convert 59% to 60% of electrical energy received from the grid to power at the wheels, while conventional vehicles convert only 17% to 21% of the energy in gasoline to power. 

Policy type Description
Active transportation

Active transportation refers to forms of transportation where people physically power their own mobility through walking, biking, skateboarding, and similar modes. Though local governments typically take the lead on active transportation initiatives, provinces can assist the process through legislation, regulation, and policies.

Electric Vehicle incentives

Governments can reduce barriers to EV / PHEV uptake by offering financial incentives to consumers and businesses, such as tax credits, rebates, and sales tax exemptions to consumers. As of May 1, 2019, the federal government offers purchase incentives of $5,000 for BEVs and long-range PHEVs, and $2,500 for shorter range PHEVs. Fleet owners can access up to ten of these light-duty vehicle incentives. Federal incentives are set to end in March 2025.

EV-ready Buildings

Governments can reduce barriers to EV/PHEVs by implementing requirements that new developments or major renovations include EV charging infrastructure, such as energized electrical outlets capable of Level 2 charging or higher.

Support for public charging

Policy or programs to support the installation of private residential or business charging stations facilitate vehicle adoption, and support for publicly accessible charging stations for electric or plug-in hybrid vehicles can reduce ‘range anxiety’ barriers to adoption

Vehicle-to-grid interactivity

Vehicle-to-grid integration allows electric vehicles to exchange energy with the grid. A plugged-in EV can not only charge its battery, it can also transfer unused power back to the grid to be used elsewhere during peak demand. This is referred to as bi-directional (two-way) charging.

ZEV Mandates

Governments can promote energy efficiency in personal vehicle transportation by adopting mandates requiring that zero-emission vehicles comprise a minimum share of all new vehicles sold in a given jurisdiction.