Zero-emission vehicle standards: Quebec must let consumers choose, says the MEI

Montreal, July 23, 2026 – Given that Quebecers’ demand for electric vehicles is far lower than expected, the Quebec government should scrap its electric vehicle sales quotas, advises the MEI in a policy brief published this morning.

“Government has no business dictating the choices of Quebec consumers,” says Gabriel Giguère, senior policy analyst at the MEI. “Consumers are far better placed than civil servants to identify the products that best meet their needs. Quebec should respect that.”

The Government of Quebec has launched public consultations on amendments to its zero-emission vehicle standard. The draft regulation proposes a downward revision of the interim targets and of the final target for 2035, among other changes.

Regulations out of touch with reality

Government figures show zero-emission vehicles accounting for just 15.0 per cent of new registrations in Quebec during the first quarter of 2026, far short of this year’s target of 32.5 per cent. Even with the new changes proposed for the government’s guidelines, sales would remain well below the revised target of 26.0 per cent proposed for this year.

“Consumers are sending a clear message: electric vehicles are not answering their needs,” asserts Mr. Giguère. “The government should take this into account rather than trying to force them to buy a product that does not meet their requirements.”

There are multiple factors behind this lack of interest. To begin with, electric vehicles are still far more expensive than their gasoline-powered competitors.

While government predicts price parity in the future, an electric vehicle with a range comparable to a conventional vehicle (about 640 km) is not expected to be achieved before 2047.

Issues with performance in very cold weather and a scarcity of charging infrastructure can also cause concern among consumers, leading them to opt for conventional vehicles instead.

A cost likely to be passed on to consumers

The new standards impose significant compliance costs on manufacturers who fail to meet government quotas.

Under the draft regulation, one credit will be awarded for each fully electric vehicle, 0.75 credits for each plug-in hybrid with a range of at least 80 km, and 0.25 credits for each eligible non-plug-in hybrid.

If a manufacturer fails to accumulate enough credits, it must either pay a penalty of $20,000 per missing credit, or purchase credits from another manufacturer. Combining this penalty fee with data from the first quarter of 2026 results in a theoretical cost of approximately $131.9 million.

In the end, these costs will be passed on to consumers through higher prices and a more limited range of vehicles, explains the researcher.

“This regulation does not make electric vehicles any more attractive,” concludes Mr. Giguère. “Rather, it seeks to make gasoline-powered vehicles artificially less attractive. The government should respect Quebecers’ freedom of choice rather than imposing regulatory targets.”

The MEI brief is available here.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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