Amidst the climate crisis, Canada can lead the electrical vehicle industry

Although recent climate activism has enabled many key sustainability issues within the global energy sector to be identified, there are still very few people who are trained in the clean-tech industry. More support is needed in order to move towards carbon neutrality, which balances carbon emissions and removals, among other related environmental concerns. A stronger Canadian cleantech front will fuel a competitive global market for carbon-neutral projects, which will eventually eliminate fuel-based counterparts. At the same time, which growing concerns over the climate crisis, there exists a growing demand for electrical vehicles. In light of this trend, it would ultimately be to Canada’s advantage to incentivize training in this industry, invest in the production of clean vehicles, and be a global leader in carbon-neutral travel.

Canada is known for its substantial output and export economy, possessing a significant automotive industry that accounts for 10% of the country’s manufacturing GDP. It also has the human and capital resources required to perform well in the clean energy sector, however, there is a noticeable skills shortage in this sector. The production of an electric vehicle requires complex electric power-train designers, battery cell engineers, and power-electronics trades among other specializations.

There is an interesting paradox between the rise in the youth’s mobilization regarding the shortcomings of the government’s environmental policy and the significantly low numbers of students immersed in sustainable technology. This puts the Canadian government in a difficult position to move forward on this issue. As a result, it is important to encourage the next generation to immerse themselves in specializations related to cleantech engineering.

It is clear that there are challenges to promote cleantech development in the country, however, at the corporate level, politicians often underestimate the rate at which companies chose to adopt alternative technological products. This creates disparities between policy-making and real investments in technology. In fact, a number of automobile companies are already redirecting much of their focus on converting traditional factories to hybrid or e-vehicle plants with the shift in demand. For instance, Volkswagen AG has pledged $34 billion USD for an all-electric car lineup and Ford is projecting to invest $11 billion by 2022 with ambitious plans for 40 hybrid or fully electric vehicles in its lineup. A forecasted estimate suggests that the cost of producing an e-vehicle is expected to fall below that of traditional gas-powered models by 2022, appealing to a keen audience which cannot afford e-vehicles at its current market price. 

There are a number of identified consumer incentives for purchasing e-vehicles even beyond its environmental impact: owners of e-vehicles can save thousands of dollars in gasoline over the course of a lifetime and automobiles are cheaper to operate thanks to fewer parts in need of repair. Additionally, e-vehicles can last longer than traditional cars because the braking system is able to control itself with an electrical motor.

The active formulation of e-vehicle factories in Canada would help push this industry into the Canadian economy. This will call for the training of new skills, and for the production process to occur in Canada instead of outsourcing to China or other countries as per tradition. Canada’s leadership in the e-vehicle industry would contribute to the country’s automotive heritage and convey the values from recent climate movements. Additionally, this would create new jobs for Canadians and ultimately reduce Canada’s carbon footprint, which remains one of the highest in the world per capita.

For all of this to occur, policymakers should encourage vocational training through tax incentives and subsidies. Next, policies must address the needs of all of the stakeholders involved in the e-vehicle industry to reduce the chance for industry collapse or restrictive development. The clean energy sector needs to be promoted as a fast-moving, dynamic sector, and this is best fueled by simultaneously promoting vocational-technical education and increasing the number of opportunities related to this new career path. Currently, Sustainable Development Technology Canada (SDTC) is running pilot projects across the country, and these investments are crucial to the development of more efficient technology. Navdeep Bains, the Minister of Innovation, Science and Economic Development, noted how “Canadian companies are showcasing their leadership in the development of advanced technologies shaping the future of the auto industry… [the country] is uniquely well-positioned to lead on the design, development and production of the cars of the future.” The president of General Motors Canada also recognizes that “the future of the automobile is increasingly electric, connected, autonomous, and an integral part of the sharing economy,” which corresponds with the conclusions made at the 2019 World Manufacturing Forum. 

Economic endeavours often conflict with environmental interests, and with the world’s eyes on our leaders’ next steps, it is increasingly important that  Canada turns to new strategies for a sustainable green economy. The development of electrical vehicles in Canada will also promote an international skills-sharing system as our global environmental issues link world governments closer together. Additionally, this could be an opportunity for the country to start shifting away from its current reliance on the oil industry. It is a pivotal time for Canada to take advantage of its available resources and incentivize vocational training to curate a bright future of clean-tech innovation.