QUEBEC PRE-BUDGET CONSULTATIONS
Montreal, January 31, 2024— Propulsion Québec, the industrial cluster for electric and intelligent transportation (EIT), today submits its priorities in anticipation of the Government of Quebec’s 2024 budget. The cluster’s requests aim to support the development and growth of Quebec’s EIT industry, a high-potential sector for building Quebec’s economy of tomorrow.
“Over the past few years, we can say that the Government of Quebec is heading in the right direction to support the rise of EIT and decarbonize the transportation sector, but to meet climate targets winning conditions must be put in place. Better access to capital, a strong and local supply chain and a network of adapted infrastructure will encourage the shift to zero-emission transportation. Modal shift toward collective and active transportation will also be essential to reduce our carbon footprint and contribute to a wiser consumption of our energy resources”, says Ms. Michelle LLambias Meunier, President and Chief Executive Officer of Propulsion Québec.
Improve access to capital
Financing is one of the main issues holding back the development of Quebec companies, particularly for critical start-up and growth phases. It has been shown that the velocity of financing available to EIT companies is much slower and that the size of investment rounds is smaller compared to other jurisdictions. The cluster therefore recommends that the Government of Quebec refine its support for companies in the EIT sector to ensure their competitiveness.
We particularly recommend:
- To lighten the burden on entrepreneurs by having the ability to guarantee certain investments, at all stages of development and growth ;
- To increase financing for companies at the start-up stages (grants) and growth stages (grants, loans and tax credits) ;
- To increase funding for R&D and innovation through the revival of collaborative and mobilizing calls for projects for the EIT sector ;
- To support pilot experimentation projects in the EIT sector.
- To ensure the continuation of accelerated investment incentives ;
- Reduce the proportion of “mandatory private financing” (which is often over 80%) so that companies can obtain financing or grants awarded by the government.
Continue to support the development of the Quebec battery sector
Quebec has all the assets necessary to position itself favorably on the global stage in developing a green and sustainable battery value chain thanks to a complete value chain, ethical mineral extraction and a commitment to traceability and circularity. Several stakeholders are already well established in Quebec and are at work to ensure the development of this promising sector. Quebec stands to gain by building on existing strengths while attracting foreign investments to maximize benefits.
We also recommend that the Government of Quebec:
- Support the development of geological knowledge in the critical and strategic minerals sector ;
- Support the value-added processing and secondary processing of critical and strategic minerals.
- Support the extraction and processing of critical and strategic minerals as well as local manufacturing of components to reduce dependencies on Asia. ;
- Support the development of structuring projects with environmental and social benefits in the local communities where critical and strategic mineral projects will be developed ;
- Support the reuse and recycling sector for batteries ;
- Financially support the commercialization and deployment of innovative technologies that reduce the carbon and environmental impact of a green battery sector.
Maintain, enhance and extend incentive programs for the transition to electrification
The Government of Quebec’s incentive programs (Écocamionage, Transportez vert, Roulez vert, School Transportation Electrification Program, Écobus, Program for Efficiency in Maritime, Air and Rail Transport) have a direct impact on a company’s decision to convert its vehicle fleet to zero-emission vehicles. To ensure better predictability for companies that wish to plan their investments for at least three years, we consider it important to extend them and to ensure there is no gap between the current program and the renewed program.
Accelerate the deployment of a public charging network adapted to heavy-duty vehicles
To succeed in electrifying heavy transport, adapted charging infrastructure will be necessary. Substantial investments will need to be made to meet companies’ needs and accelerate the deployment of fast charging infrastructure. Propulsion Québec therefore recommends increasing funding dedicated to deploying a charging network adapted to heavy commercial vehicles to ensure the decarbonization of this sector.
“Electrifying transportation helps fight climate change and achieve the targets Quebec has set for GHG reductions and carbon neutrality. Certainly, we acknowledge the Government of Quebec’s support for decarbonizing the economy, but faced with the current climate crisis, it is essential to go further and focus efforts on developing a complete, resilient and local value chain that moves toward the goal of sustainable mobility”, concludes Ms. LLambias Meunier.
About Propulsion Québec
The Quebec electric and intelligent transportation cluster mobilizes all actors in the value chain around concerted projects aimed at positioning Quebec among the leaders in the development and deployment of land-based transportation modes that favor electric and intelligent transportation. Created in 2017, Propulsion Québec now has more than 260 members from various sectors and deploys its resources across seven distinct workstreams aimed at developing and supporting innovative projects. The cluster receives financial support from the Government of Quebec, the Government of Canada, the Montreal Metropolitan Community (CMM), the City of Quebec, Mouvement Desjardins, Fasken, Hydro-Québec, Québecor and the Caisse de dépôt et placement du Québec (CDPQ).
