2024-2025 BUDGET OF THE GOVERNMENT OF QUEBEC
Montreal, March 12, 2024 — Propulsion Québec, the cluster for electric and intelligent transportation (TEI), takes note of the Quebec budget tabled today by the Minister of Finance, Mr. Éric Girard, and supports the Government of Quebec’s choice to prioritize education and training to address labour shortages in several sectors. We regret, however, that the fight against climate change is not among the budget’s major priorities. Given the significant contribution of electric land transportation to reducing GHG emissions, targeted investments supporting the development and growth of this industry were expected. The same applies to measures to assist the transition to zero-emission vehicles.
" We would have liked the electric and intelligent transportation (TEI) industry to be listed among the strategic and priority sectors. It has demonstrated dynamism in proposing and developing concrete solutions aimed at meeting the environmental objectives set by the government. Transportation is responsible for more than 40% of greenhouse gas emissions. It is essential to accelerate its decarbonization by supporting its electrification and public transit." , says Ms. Michelle LLambias Meunier, President and CEO of Propulsion Québec.
Unmet expectations
Incentive programs: "The cluster had hoped that the uncertainty related to the renewal of transition incentive programs, notably the Eco-Trucking Program and the School Transportation Electrification Program, which are coming to an end shortly, would be resolved with this budget. We consider it important that these programs, which provide essential predictability to Quebec manufacturers, be extended quickly to avoid a period of uncertainty," adds Ms. LLambias-Meunier.
Reduction of the Roulez vert program: Propulsion Québec is disappointed by the gradual reduction of rebates offered as of January 1, 2025 and the end of the program beginning in 2027. We consider it essential that the funds be reinvested for medium- and heavy-duty vehicles — intended for public transit and freight transport — as well as in the deployment of a charging infrastructure network adapted to all vehicles.
Lack of measures aimed at improving TEI companies' access to capital: the cluster would have liked specific support aimed at TEI-sector companies to ensure their competitiveness in the face of global competition. Financing is one of the main issues hindering the development of Quebec companies, particularly for the critical start-up and growth phases.
Importance of focusing on modal shift to public transit
Propulsion Québec is pleased to note the additional $672.9 million allocated to improving mobility and electrifying public transit. It nevertheless recalls the importance of better supporting public transit to ensure asset maintenance so that the service offering meets users’ actual demand. This criterion is essential to ensure the shift from single-occupant cars to public transit.
Some other positive measures and clarifications expected from various ministries
Propulsion Québec nonetheless wishes to applaud certain five-year funding measures:
- $26 million to promote graduation for the energy transition and other priority fields, notably the battery sector;
- The recapitalization of the Natural Resources and Energy Capital Fund to support structuring investment projects, in support of the Quebec Strategy for the Development of the Battery Sector and the Quebec Plan for the Valorization of Critical and Strategic Minerals 2020-2025;
- $203.6 million to promote the adoption of new technologies and research;
- $125 million to establish industrial laboratories within innovation zones;
- $15 million to support the integration of emerging technologies;
- $370 million to promote the success and retention of university students;
- $43 million to support training offerings in priority fields and digital transformation;
- $400 million to support the economic and social integration of immigrants.
As with the battery sector, Propulsion Québec expects that TEI, more broadly, will be listed among the strategic priority sectors and will be able to benefit from the measures mentioned above in terms of training, research, workforce and adoption of new technologies.
Awaiting the update of the implementation plan for the Plan for a Green Economy 2030
Although no additional funds are planned for the Plan for a Green Economy 2030, we hope the update will include measures targeting medium- and heavy-duty zero-emission vehicles and the deployment of charging infrastructure adapted to these types of vehicles.
"Facing the current climate challenge, we must make greater efforts to develop a complete, resilient and local value chain that moves toward the goal of sustainable mobility," concludes Ms. LLambias-Meunier.
About Propulsion Québec
Quebec’s electric and intelligent transportation cluster brings together all actors in the sector around coordinated projects aimed at positioning Quebec among the leaders in the development and deployment of land transportation modes that favor electric and intelligent transport. Created in 2017, Propulsion Québec now has more than 260 members from different sectors and deploys its resources across seven distinct workstreams aimed at developing and supporting innovative projects. The cluster benefits from the financial support of 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 CDPQ.
