Minister Benoit Charette recently tabled Bill 81, which amends a number of environmental laws. One of the bill's key provisions is the obligation for heavy vehicle dealers to sell a certain percentage of zero-emission vehicles (ZEVs). As I understand it, dealers' sales will be analyzed over a three-year period. Eventually, they will have to accumulate credits by selling zero-emission vehicles to offset the sale of fossil-fuel trucks.
But is it good news? Is it a surprise? And above all, is it the right strategy? Let's explore these questions together.
THE WORLD OF HEAVY HAULAGE: A KEY SECTOR
Heavy transport is responsible for over 45% of Quebec's transportation-related greenhouse gas (GHG) emissions. This significant contribution calls for immediate and effective action. The trucking industry is aware of its role and is ready to collaborate. At events where we talk to carriers, their curiosity about new technologies and their willingness to adopt solutions to reduce their carbon footprint are palpable.
However, the sector has to navigate a complex environment, often referred to as the “Messy Middle”, where energy transition solutions remain unclear and evolving (see my previous article for more details).
Transportation is a resilient industry, but one that is constantly put to the test. As an essential link in the economy, it faces major challenges:
- Fierce, sometimes unfair, competition (e.g. the “chauffeur inc.” phenomenon) ;
- Increasingly stringent customer requirements ;
- Rapid digital transformation ;
- A shortage of both mechanics and drivers.
Talking to a carrier specializing in gypsum delivery, he explained that, in the past, a single truck could make four deliveries a day. Today, due to the constraints of construction sites requiring deliveries before 8 a.m., he needs almost four trucks for the same tasks. This type of operational overload is common in the industry, and accentuates the logistical challenges.
THE OBLIGATION TO SELL ZERO-EMISSION VEHICLES
Bill 81 requires Quebec dealers to sell an increasing percentage of zero-emission vehicles. This initiative is in line with Environmental Protection Agency (EPA) standards, which directly target manufacturers by restricting vehicle emissions. These standards will also oblige manufacturers to sell zero-emission vehicles in order to accumulate carbon credits.
This is not a surprise, but a logical and coherent progression. By way of comparison, in October 2021, it will no longer be possible to register a school bus in Quebec that is not 100% electric. This abrupt transition from 0% to 100% left the school bus industry in a fragile state. Fortunately, Bill 81 seems better designed, with a more gradual approach, which we welcome.
NATURAL GAS: A FORGOTTEN SOLUTION
Unfortunately, bills and subsidy programs often ignore the potential of natural gas, particularly renewable natural gas (RNG). Yet this technology is a viable and immediately available solution for significantly reducing GHG emissions.
The problem lies in the methodology used to calculate emissions. Current analyses do not always take into account the complete cycle, from well to wheel. For example, RNG is produced from waste or biomass that would emit GHGs if not recovered. This model is similar to a credit system: we offset emissions by avoiding producing them elsewhere.
In a context where electric vehicles still lack the autonomy to meet the needs of the majority of transporters, and where hydrogen is in its infancy, natural gas could play a role as an efficient and safe transitional solution. Excluding this option would be regrettable, as it could accelerate our progress towards climate objectives.
BUILDING A MULTI-ENERGY FUTURE
We firmly believe that the future of transportation will be multi-energy. Each solution has its strengths:
- Electric vehicles for short distances;
- Hydrogen for long distances and intensive applications;
- Natural gas as a transition technology.
It's crucial to choose the right vehicle for the right need, while making the most of every energy source.
IN SUMMARY
Bill 81 is a promising step towards decarbonizing the transportation sector. However, to maximize its impact, it is important to adopt a comprehensive approach:
1. Analyze operations to propose appropriate recommendations:
- Improve driving habits.
- Install emission-reducing accessories (auxiliary heating, electric refrigerated trailers, idle management, etc.).
- Optimize routes and reduce empty runs.
2. Use telematics to monitor results and identify opportunities for improvement.
3. Include natural gas in the list of eligible vehicles, with high requirements for the use of RNG.
4. Collaborate with the industry to understand its needs and constraints, and build solutions based on data rather than impressions.
The transport industry is ready to meet these challenges. It is now up to the government to provide a realistic, evidence-based framework to support this essential transition.
