Electric vehicles in Canada generate on average only about a quarter of the lifecycle emissions produced by comparable internal-combustion-engine models, and handily outperform gasoline and diesel vehicles even on the country’s dirtiest electricity grids, according to a recent study from TD Economics.
The bank’s analysis published March 4 found cradle-to-grave emissions savings for the average battery-electric vehicle in Canada ranged from 70-77 per cent compared to ICEVs, depending on the vehicle segment.
“This relationship holds even in a scenario where the lithium-ion battery of the BEV is replaced before the vehicle reaches its end of life though the average emissions savings decline to 59-69 per cent,” the study said.
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The assessment incorporates every stage of a vehicle’s lifecycle, including the extraction of raw materials used as inputs, the manufacturing process, production and consumption of fuels to power the vehicle, maintenance and end-of-life disposal. It assumes drivers will put 15,000 kilometres on their odometers annually and gives the vehicles lifespans of 18 years.
While EVs save on lifecycle emissions across the country, the cleanliness of the provincial power grid determines how much.
In Quebec and Manitoba, which generate nearly all their power at hydroelectric stations, emissions savings for an electric- versus gasoline-powered SUV lead the country at about 83 per cent. In Ontario, where nuclear, hydro and renewables make up 90 per cent of electricity-generating capacity, emissions savings are about 80 per cent.
Savings are less pronounced in provinces that rely heavily on coal, natural gas and diesel for their electricity-generating capacity. Savings for an electric- over a gasoline-powered SUV are about 55 per cent in Alberta and about 45 per cent in Saskatchewan. In sparsely populated Nunavut, where electricity is produced entirely using diesel generators, lifecycle emissions savings for EVs versus ICEVs fall to a national low of 25 per cent, the report found.
EV emissions savings come from more than just fuel
While EVs outperform ICEVs throughout their lifecycle, the TD report found upfront resource extraction and manufacturing emissions for EVs in the 2024 model year are about double those for ICEVs. EV batteries are the primary contributor, requiring “vast quantities” of metals and energy intensive processing steps.
But running on electricity instead of gasoline or diesel allows EVs to quickly make up ground. In Canada, the average EV pulls ahead of the average ICEV on lifecycle emissions in the second year of ownership, according to the report.
More efficient use of energy by electric motors is another contributing factor that gives EVs a significant edge over ICEVs.
EVs make direct use of 87-91 per cent of the energy in their batteries to turn their wheels, including the power recovered through regenerative braking, the report found. This compares to ICEVs that use just 16-25 per cent of the energy in gasoline for propulsion. Engine, drivetrain and idling losses result in up to 80 per cent of the energy in gasoline being wasted in ICEVs, according to TD.
This gulf in powertrain efficiency allows EVs to outperform ICEVs on lifecycle emissions, even in provinces and territories such as Alberta, Saskatchewan and Nunavut, where the electricity grids are more emissions intensive than gasoline.
In addition to the current cradle-to-grave emissions savings, further decarbonization of power grids in provinces reliant on fossil fuels will increase the savings associated with EVs, the TD report said.
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