PBO Report Says Canadians Still Can’t Afford EV As Liberal Plans to Ban Gas Vehicles by 2035

A fresh note from the Parliamentary Budget Officer flatlines Ottawa’s optimism on electric vehicle affordability, warning that battery-electric vehicles still need to be 29%–33% cheaper than today to hit the Liberals’ Electric Vehicle Availability Standard of 60% zero-emission sales by 2030.

“With the removal of fuel charges… the relative ownership cost of BEVs would need to decrease by 33%,” analysts Louis Perrault and Tim Scholz write, surpassing the 31% reduction flagged in the PBO’s August 2024 baseline.

The math shifted when Ottawa scrapped the consumer carbon levy on April 1 and floated a revival of the $5,000 Incentives for Zero-Emission Vehicles rebate. Without that subsidy, BEVs must close the full 33% gap; even a blanket, permanent rebate only trims the target to 29%.

Conservative MP Dan Mazier brands the mandate “a financial nightmare disguised as environmental policy,” arguing that “working families can’t afford this.”

A typical 2026 BEV car carries a $61,520 sticker versus $54,800 for its internal-combustion counterpart; SUVs and pickups widen the gap to $75,500 against $64,010. Lifetime economics do improve—eight-year discounted costs are $67,830 for BEVs versus $73,580 for ICE cars—but that payoff depends on incentives and, critically, the now-abolished carbon tax on fuel.

Infrastructure poses an added hurdle. Meeting the sales mandate requires 33,900 extra Level-2 chargers and 4,700 fast chargers by 2030, fewer than Natural Resources Canada’s own needs study—and none of them are accounted for in household cost models.

Extending iZEV across “all new BEV vehicles purchased in 2025 and thereafter” would transfer billions to buyers while erasing carbon price revenue, leaving taxpayers to underwrite both the purchase subsidy and the lost levy.

In other words, Ottawa must pay motorists to buy BEVs and pay itself for cancelling the very price signal meant to make those BEVs attractive.

First floated in 2021 and locked into regulation in December 2023, Ottawa’s roadmap calls for 100% zero-emission sales of new light-duty cars and trucks by 2035, with binding way-points of 20% by 2026 and 60% by 2030.


Information for this story was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

They Laughed at $3,000 Gold, Now We’re Headed for $4,000! | Sean Roosen – Osisko Development Corp.

Recommended

Steadright Begins Preliminary Economic Assessment On TitanBeach Project

Three Miners Trapped Underground At Newmont’s Red Chris Mine

Related News

Electric Vehicles: Weight Problem Set To Cause Issues For Parking Garages

Before you park your car the next time in a multi-level parking garage, you may...

Sunday, June 11, 2023, 03:29:00 PM

General Motors Adds Another $7 Billion Towards EV and Autonomous Car Production

General Motors has announced it will begin ramping up production of its all-electric vehicles, with...

Thursday, November 19, 2020, 03:32:00 PM

Lordstown Motors Significantly Cuts Production Guidance For 2021

Lordstown Motors (NASDAQ: RIDE) substantially decreased its production outlook for the Endurance electric truck this...

Tuesday, May 25, 2021, 10:07:00 AM

Virginia Axes Ford’s EV Battery Plant Plans Over Partnership With Chinese-Owned CATL

Virginia Governor Glenn Youngkin has rejected Ford Motor Co’s (NYSE: F) investment to build a...

Thursday, January 19, 2023, 08:23:54 AM

New Study Shows People Are Increasingly Interested In EVs, They’re Just Not Buying

Electric vehicle manufacturers are facing a significant challenge as the supply of EVs surpasses demand,...

Thursday, July 13, 2023, 06:17:00 AM