Toronto to start trial run of 'driverless' electric vehicle shuttles

Canada 2023 Clean Energy Outlook highlights decarbonization, renewables, a net-zero grid by 2035, hydrogen, energy storage, EV mandates, carbon pricing, and critical minerals, aligning with IRA incentives and provincial policies to accelerate the transition.

Key Points

A concise overview of Canada's 2023 path to net-zero: renewables, clean grids, storage, EVs, and hydrogen.

✅ Net-zero electricity regulations target 2035

✅ Alberta leads PPAs and renewables via deregulated markets

✅ Tax credits boost storage, hydrogen, EVs, and critical minerals

The year 2022 may go down as the most successful one yet for climate action. It was marked by monumental shifts in energy policy from governments, two COP meetings and heightened awareness of the private sector's duty to act.

In the U.S., the Inflation Reduction Act (IRA) was the largest federal legislation to tackle climate change, injecting $369 billion of tax credits and incentives for clean energy, Biden's EV agenda and carbon capture, energy storage, energy efficiency and research.

The European Union accelerated its green policies to transition away from fossil fuels and overhauled its carbon market. China and India made strides on clean energy and strengthened climate policies. The International Energy Agency made its largest revision yet as renewables continued to proliferate.

The U.S. ratified the Kigali Amendment, one of the strongest global climate policies to date.

Canada was no different. The 2022 Fall Economic Statement was announced to respond to the IRA, offering an investment tax credit for renewables, clean technology and green hydrogen alongside the Canada Growth Fund. The federal government also proposed a 2035 deadline for clean electrical grids and a federal zero-emissions vehicle (ZEV) sales mandate for light-duty vehicles.

With the momentum set, more action is promised in 2023: Canadian governments are expected to unveil firmer details for the decarbonization of electricity grids to meet 2035 deadlines; Alberta is poised to be an unlikely leader in clean energy.

Greater attention will be put on energy storage and critical minerals. Even an expected economic downturn is unlikely to stop the ball that is rolling.

Shane Doig, the head of energy and natural resources at KPMG in Canada, said events in 2022 demonstrated the complexity of the energy transformation and opened “a more balanced conversation around how Canada can transition to a lower carbon footprint, whilst balancing the need for affordable, readily available electricity.”

Expect further developments on clean electricity
2023 shapes up as a crucial year for Canada’s clean electricity grid.

The federal government announced it will pursue a net-zero electricity grid by 2035 under the Clean Electricity Regulations (CER) framework.

It requires mass renewable and clean energy adoption, phasing out fossil fuel electricity generation, rapid electrification and upgrading transmission and storage while accommodating growth in electricity demand.

The first regulations for consultation are expected early in 2023. The plans will lay out pollution regulations and costs for generating assets to accelerate clean energy adoption, according to Evan Pivnick, the clean energy program manager of Clean Energy Canada.

The Independent Energy System Operator of Ontario (IESO) recently published a three-part report suggesting a net-zero conversion for Ontario could cost $400 billion over 25 years, even as the province weighs an electricity market reshuffle to keep up with increasing electricity demand.

Power Utility released research by The Atmospheric Fund that suggests Ontario could reach a net-zero grid by 2035 across various scenarios, despite ongoing debates about Ontario's hydro plan and rate design.

Dale Beguin, executive vice president at the Canadian Climate Institute, said in 2023 he hopes to see more provincial regulators and governments send “strong signals to the utilities” that a pathway to net-zero is realistic.

He recounted increasing talk from investors in facilities such as automotive plants and steel mills who want clean electricity guarantees before making investments. “Clean energy is a comparative advantage,” he said, which puts the imperative on organizations like the IESO to lay out plans for bigger, cleaner and flexible grids.

Beguin and Pivnick said they are watching British Columbia closely because of a government mandate letter setting a climate-aligned energy framework and a new mandate for the British Columbia Utilities Commission. Pivnick said there may be lessons to be drawn for other jurisdictions.

Alberta’s unlikely rise as a clean energy leader
Though Alberta sits at the heart of Canada’s oil and gas industry and at the core of political resistance to climate policy, it has emerged as a front runner in renewables adoption.

Billion of dollars for wind and solar projects have flowed into Alberta, as the province charts a path to clean electricity with large-scale projects.

Pivnick said an “underappreciated story” is how Alberta leaned into renewables through its “unique market.” Alberta leads in renewables and power purchase agreements because of its deregulated electricity market.

Unlike most provinces, Alberta enables companies to go directly to solar and wind developers to strike deals, a model reinforced under Kenney's electricity policies in recent years, rather than through utilities. It incentivizes private investment, lowers costs and helps meet increasing demand, which Nagwan Al-Guneid, the director of the Business Renewables Centre - Canada at the Pembina Institute, said is “is the No. 1 reason we see this boom in renewables in Alberta.”

Beguin noted Alberta’s innovative ‘reverse auctions,’ where the province sets a competitive bidding process to provide electricity. It ended up making electricity “way cheaper” due to the economic competitiveness of renewables, while Alberta profited and added clean energy to its grid.

In 2019, the Business Renewables Centre-Canada established a target of 2 GW of renewable energy deals by 2025. The target was exceeded in 2022, which led to a revised goal for 10 GW of renewables by 2030.

Al-Guneid wants to see other jurisdictions help more companies buy renewables. She does not universally prescribe deregulation, however, as other mechanisms such as sleeving exist.

Alberta will update its industrial carbon pricing in 2023, requiring large emitters to pay $65 per tonne of carbon dioxide. The fee climbs $15 per tonne each year until it reaches $175 per tonne in 2030. Al-Guneid said as the tax increases, demand for renewable energy certificates will also increase in Alberta.

Pivnick noted Alberta will have an election in 2023, which could have ramifications for energy policy.

Batteries and EV leadership
Manufacturing clean energy equipment, batteries and storage requires enormous quantities of minerals. With the 2022 Fall Economic Statement and the Critical Minerals Strategy, Canada is taking important steps to lead on this front.

Pivnick pointed to battery supply chain investments in Ontario and Quebec as part of Canada’s shift from “a fuel-based (economy) to a materials-based economy” to provide materials necessary for wind turbines and solar panels. The Strategy showed an understanding Canada has a major role to meet its allies’ needs for critical minerals, whether it’s the resources or supply chains.

There is also an opportunity for Canada to forge ahead on energy storage. The Fall Economic Statement proposes a 30 per cent tax credit for investments into energy storage. Pivnick suggested Canada invest further into research and development to explore innovations like green hydrogen and pump storage.

Doig believes Canada is “well poised” for batteries, both in terms of the technology and sustainable mining of minerals like cobalt, lithium and copper. He is bullish for Canada’s electrification based on its clean energy use and increased spending on renewables and energy storage.

He said the federal ZEV mandate will drive increased demand for the power, utilities, and oil and gas industries to respond.

The majority of gas stations, which are owned by the nation’s energy industry, will need to be converted into EV charging stations.

Offsetting a recession 
One challenge will be a poor economic forecast in the near term. A short "technical recession" is expected in 2023.

Inflation remains stubbornly high, which has forced the Bank of Canada to hike interest rates. The conditions will not leave any industry unscathed, but Doig said Canada's decarbonization is unlikely to be halted.

“Whilst a recession would slow things down, the concern around energy security definitely helps offset that concern,” he said.

Amid rising trade frictions and tariff threats, energy security is top of mind for governments and private organizations, accelerating the shift to renewables.

Doig said there is a general feeling a recession would be short-lived, meaning it would be unlikely to impact long-term projects in hydrogen, liquified natural gas, carbon capture and wind and solar.

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B.C. Hydro fast EV charging stations roll out 180 kW DC fast chargers, power sharing, and rural network expansion in Surrey, Manning Park, Mackenzie, and Tumbler Ridge to ease range anxiety across northern B.C.

Key Points

180 kW DC chargers with power sharing, expanding B.C.'s rural EV network to cut range anxiety and speed up recharging.

✅ 180 kW DC fast charging: ~180 km added in about 10 minutes

✅ Power sharing enables two vehicles to use one unit simultaneously

✅ Expands rural charging coverage to cut range anxiety for northern B.C.

B.C. Hydro has unveiled plans to install new charging stations it says can add as much as 180 kilometres worth of range to the average electric vehicle in 10 minutes.

The utility says the new 180-kilowatt units will be added to its network, expanding stations in southern B.C. as soon as this fall, with even more scheduled to arrive in 2024.

The first communities to get the new faster-charge stations are Surrey, Manning Park and, north of Prince George, Mackenzie and Tumbler Ridge, while the Lillooet fast-charging site is already operational.

B.C. Hydro president Chris O'Riley says both current and prospective electric vehicle owners have said they want improved coverage in more rural parts of the province in order to address range anxiety, as the utility has warned of a potential EV charging bottleneck if demand outpaces infrastructure.

"We are listening to feedback from our customers," he said.

The new stations will also be the first from B.C. Hydro to offer power sharing, which lets two different vehicles use the same unit to charge at the same time.

The adoption of electric vehicles in B.C. is much higher in southern urban areas than rural, northern ones, according to statistics from the provincial government made available in 2022, as the province leads the country in going electric according to recent reports.

The figures showed about one in every 45 people owns a zero-emission vehicle in the southwest regions of the province, but that number drops to one in 232 in the Kootenays, where the region makes electric cars a priority through local initiatives, and one in 414 in northern B.C.

The number of public charging stations closely corresponds to the number of zero-emission vehicles in various regions.

The Vancouver area has more than 500 fast-charging ports, according to ChargeHub, a website that tracks charging stations in North America. 

In contrast, the route from Prince George to Fort Nelson via Dawson Creek along Highway 97, part of the B.C. Electric Highway network connecting the region — a distance of more than 800 kilometres — has just three locations where a vehicle can be charged to 80 per cent power in an hour or less, creating challenges for people hoping to travel the route.

The disparity is also clear in a just-published analysis from the non-profit Community Energy Association, which acts as an advisory group to government associations. 

It found that while there is roughly one charging port every three square kilometres in Metro Vancouver, the number drops to one every 250 square kilometres in the Regional District of East Kootenay and one every 3,500 square kilometres in the Peace River Regional District, in the province's northeast.

"The more infrastructure we can get across the region ... the more the adoption of electric vehicles will increase," said the association's director of transportation initiatives, Danielle Weiss.

"We are excited to hear that B.C. Hydro is also viewing rural areas as a key focus for their new, enhanced charging technology."

B.C. Hydro says it currently has 153 charging units at 84 locations across the province with plans to add an additional 3,000 ports over the next 10 years, with provincial EV charger rebates supporting home and workplace installations as well.

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EV battery supply strategies weigh in-house cell manufacturing against supplier contracts, optimizing costs, scale, and supply-chain resilience for electric vehicles. Automakers like Tesla, GM-LG Chem, VW-Northvolt, and Ford balance gigafactories, joint ventures, and procurement risks.

Key Points

How automakers secure EV battery cells by balancing cost, scale, tech risk, and supply-chain control to meet demand.

✅ In-source cells via gigafactories, JVs, and proprietary chemistries

✅ Contract with LG Chem, Panasonic, CATL, SKI to diversify supply

✅ Manage costs, logistics, IP, and technology obsolescence risks

Auto makers, pumping billions of dollars into developing electric cars, are now facing a critical inflection point as they decide whether to get more involved with manufacturing the core batteries or buy them from others.

Batteries are one of an electric vehicle’s most expensive components, accounting for between a quarter and a third of the car’s value. Driving down their cost is key to profitability, executives say.

But whereas the internal combustion engine traditionally has been engineered and built by auto makers themselves, battery production for electric cars is dominated by Asian electronics and chemical firms, such as LG Chem Ltd. and Panasonic Corp. , and newcomers like China’s Contemporary Amperex Technology Co.

California, the U.S.’s largest car market, said last month it would end the sale of new gasoline- and diesel-powered passenger cars by 2035, putting pressure on the auto industry to accelerate its shift to electric vehicles in the coming years.

The race to lock in supplies for electric cars has auto makers taking varied paths, with growing Canada-U.S. collaboration across supply chains.

While most make the battery pack, a large metal enclosure often lining the bottom of the car, they also need the cells that are bundled together to form the core electricity storage.

Tesla several years ago opened its Gigafactory in Nevada to make batteries with Panasonic, which in the shared space would produce cells for the packs. The electric-car maker wanted to secure production specifically for its own models and lower manufacturing and logistics costs.

Now it is looking to in-source more of that production.

While Tesla will continue to buy cells from Panasonic and other suppliers, it is also working on its own cell technology and production capabilities, aiming for cheaper, more powerful batteries to ensure it can keep up with demand for its cars, said Chief Executive Elon Musk last month.

Following Tesla’s lead, General Motors Co. and South Korea’s LG Chem are putting $2.3 billion into a nearly 3-million-square-foot factory in Lordstown, Ohio, highlighting opportunities for Canada to capitalize on the U.S. EV pivot as supply chains evolve, which GM says will eventually produce enough battery cells to outfit hundreds of thousands of cars each year.

In Europe, Volkswagen AG is taking a similar path, investing about $1 billion in Swedish battery startup Northvolt AB, including some funding to build a cell-manufacturing plant in Salzgitter, Germany, as part of a joint venture, and in North America, EV assembly deals in Canada are putting it in the race as well.

Others like Ford Motor Co. and Daimler AG are steering clear of manufacturing their own cells, with executives saying they prefer contracting with specialized battery makers.

Supply-chain disruptions, including lithium shortages, have already challenged some new model launches and put projects at risk, auto makers say.

For instance, Ford and VW have agreements in place with SK Innovation to supply battery cells for future electric-vehicle models. The South Korean company is building a factory in Georgia to help meet this demand, but a fight over trade secrets has put the plant’s future in jeopardy and could disrupt new model launches, both auto makers have said in legal filings.

GM executives say the risk of relying on suppliers has pushed them to produce their own battery cells, albeit with LG Chem.

“We’ve got to be able to control our own destiny,” said Ken Morris, GM’s vice president of electric vehicles.

Bringing the manufacturing in house will give the company more control over the raw materials it purchases and the battery-cell chemistry, Mr. Morris said.

But establishing production, even in a joint venture, is a costly proposition, and it won’t necessarily ensure a timely supply of cells. There are also risks with making big investments on one battery technology because a breakthrough could make it obsolete.

Ford cites those factors in deciding against a similar investment for now.

The company sees the industry’s conventional model of contracting with independent suppliers to build parts as better suited to its battery-cell needs, Ford executive Hau Thai-Tang told analysts in August.

“We have the competitive tension with dealing with multiple suppliers, which allows us to drive the cost down,” Mr. Thai-Tang said, adding that the company expects to pay prices for cells in line with GM and Tesla.

Meanwhile, Ford can leave the capital-intensive task of conducting the research and setting up manufacturing facilities to the battery companies, Mr. Thai-Tang said.

Germany’s Daimler has tried both strategies.

The car company made its own lithium-ion cells through a subsidiary until 2015. But the capital required to scale up was better spent elsewhere, said Ola Källenius, Daimler’s chief executive officer.

The auto maker instead signed long-term supply agreements with Asian companies like Chinese battery-maker CATL and Farasis Energy (Ganzhou) Co., which Daimler invested in last year.

The company has said it is spending roughly $23.6 billion on purchase agreements but keeping its battery research in-house.

“Let’s rather put that capital into what we do best, cars,” Mr. Källenius said.

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Vehicle-to-Grid V2G unlocks EV charging flexibility and grid services, integrating renewable energy, demand response, and peak shaving to displace stationary storage and firm generation while lowering system costs and enhancing reliability.

Key Points

Vehicle-to-Grid V2G lets EV batteries discharge to grid, balancing renewables and cutting storage and firm generation.

✅ Displaces costly stationary storage and firm generation

✅ Enables demand response and peak shaving at scale

✅ Supports renewable integration and grid reliability

Owners of electric vehicles (EVs) are accustomed to plugging into charging stations at home and at work and filling up their batteries with electricity from the power grid. But someday soon, when these drivers plug in, their cars will also have the capacity to reverse the flow and send electrons back to the grid. As the number of EVs climbs, the fleet’s batteries could serve as a cost-effective, large-scale energy source, with potentially dramatic impacts on the energy transition, according to a new paper published by an MIT team in the journal Energy Advances.

“At scale, vehicle-to-grid (V2G) can boost renewable energy growth, displacing the need for stationary energy storage and decreasing reliance on firm [always-on] generators, such as natural gas, that are traditionally used to balance wind and solar intermittency,” says Jim Owens, lead author and a doctoral student in the MIT Department of Chemical Engineering. Additional authors include Emre Gençer, a principal research scientist at the MIT Energy Initiative (MITEI), and Ian Miller, a research specialist for MITEI at the time of the study.

The group’s work is the first comprehensive, systems-based analysis of future power systems, drawing on a novel mix of computational models integrating such factors as carbon emission goals, variable renewable energy (VRE) generation, and costs of building energy storage, production, and transmission infrastructure.

“We explored not just how EVs could provide service back to the grid — thinking of these vehicles almost like energy storage on wheels providing flexibility — but also the value of V2G applications to the entire energy system and if EVs could reduce the cost of decarbonizing the power system,” says Gençer. “The results were surprising; I personally didn’t believe we’d have so much potential here.”

Displacing new infrastructure

As the United States and other nations pursue stringent goals to limit carbon emissions, electrification of transportation has taken off, with the rate of EV adoption rapidly accelerating. (Some projections show EVs supplanting internal combustion vehicles over the next 30 years.) With the rise of emission-free driving, though, there will be increased demand for energy on already stressed state power grids nationwide. “The challenge is ensuring both that there’s enough electricity to charge the vehicles and that this electricity is coming from renewable sources,” says Gençer.

But solar and wind energy is intermittent. Without adequate backup for these sources, such as stationary energy storage facilities using lithium-ion batteries, for instance, or large-scale, natural gas- or hydrogen-fueled power plants, achieving clean energy goals will prove elusive. More vexing, costs for building the necessary new energy infrastructure runs to the hundreds of billions.

This is precisely where V2G can play a critical, and welcome, role, the researchers reported. In their case study of a theoretical New England power system meeting strict carbon constraints, for instance, the team found that participation from just 13.9 percent of the region’s 8 million light-duty (passenger) EVs displaced 14.7 gigawatts of stationary energy storage. This added up to $700 million in savings — the anticipated costs of building new storage capacity.

Their paper also described the role EV batteries could play at times of peak demand, such as hot summer days. “With proper grid coordination practices in place, V2G technology has the ability to inject electricity back into the system to cover these episodes, so we don’t need to install or invest in additional natural gas turbines,” says Owens. “The way that EVs and V2G can influence the future of our power systems is one of the most exciting and novel aspects of our study.”

Modeling power

To investigate the impacts of V2G on their hypothetical New England power system, the researchers integrated their EV travel and V2G service models with two of MITEI’s existing modeling tools: the Sustainable Energy System Analysis Modeling Environment (SESAME) to project vehicle fleet and electricity demand growth, and GenX, which models the investment and operation costs of electricity generation, storage, and transmission systems. They incorporated such inputs as different EV participation rates, costs of generation for conventional and renewable power suppliers, charging infrastructure upgrades, travel demand for vehicles, changes in electricity demand, and EV battery costs.

Their analysis found benefits from V2G applications in power systems (in terms of displacing energy storage and firm generation) at all levels of carbon emission restrictions, including one with no emissions caps at all. However, their models suggest that V2G delivers the greatest value to the power system when carbon constraints are most aggressive — at 10 grams of carbon dioxide per kilowatt hour load. Total system savings from V2G ranged from $183 million to $1,326 million, reflecting EV participation rates between 5 percent and 80 percent.

“Our study has begun to uncover the inherent value V2G has for a future power system, demonstrating that there is a lot of money we can save that would otherwise be spent on storage and firm generation,” says Owens.

Harnessing V2G

For scientists seeking ways to decarbonize the economy, the vision of millions of EVs parked in garages or in office spaces and plugged into the grid via vehicle-to-building charging for 90 percent of their operating lives proves an irresistible provocation. “There is all this storage sitting right there, a huge available capacity that will only grow, and it is wasted unless we take full advantage of it,” says Gençer.

This is not a distant prospect. Startup companies are currently testing software that would allow two-way communication between EVs and grid operators or other entities. With the right algorithms, EVs would charge from and dispatch energy to the grid according to profiles tailored to each car owner’s needs, never depleting the battery and endangering a commute.

“We don’t assume all vehicles will be available to send energy back to the grid at the same time, at 6 p.m. for instance, when most commuters return home in the early evening,” says Gençer. He believes that the vastly varied schedules of EV drivers will make enough battery power available to cover spikes in electricity use over an average 24-hour period. And there are other potential sources of battery power down the road, such as electric school buses that are employed only for short stints during the day and then sit idle, with the potential to power buildings during peak hours.

The MIT team acknowledges the challenges of V2G consumer buy-in. While EV owners relish a clean, green drive, they may not be as enthusiastic handing over access to their car’s battery to a utility or an aggregator working with power system operators. Policies and incentives would help.

“Since you’re providing a service to the grid, much as solar panel users do, you could get paid to sell electricity back for your participation, and paid at a premium when electricity prices are very high,” says Gençer.

“People may not be willing to participate ’round the clock, but as states like California explore EVs for grid stability programs and incentives, if we have blackout scenarios like in Texas last year, or hot-day congestion on transmission lines, maybe we can turn on these vehicles for 24 to 48 hours, sending energy back to the system,” adds Owens. “If there’s a power outage and people wave a bunch of money at you, you might be willing to talk.”

“Basically, I think this comes back to all of us being in this together, right?” says Gençer. “As you contribute to society by giving this service to the grid, you will get the full benefit of reducing system costs, and also help to decarbonize the system faster and to a greater extent.”

Actionable insights

Owens, who is building his dissertation on V2G research, is now investigating the potential impact of heavy-duty electric vehicles in decarbonizing the power system. “The last-mile delivery trucks of companies like Amazon and FedEx are likely to be the earliest adopters of EVs,” Owen says. “They are appealing because they have regularly scheduled routes during the day and go back to the depot at night, which makes them very useful for providing electricity and balancing services in the power system.”

Owens is committed to “providing insights that are actionable by system planners, operators, and to a certain extent, investors,” he says. His work might come into play in determining what kind of charging infrastructure should be built, and where.

“Our analysis is really timely because the EV market has not yet been developed,” says Gençer. “This means we can share our insights with vehicle manufacturers and system operators — potentially influencing them to invest in V2G technologies, avoiding the costs of building utility-scale storage, and enabling the transition to a cleaner future. It’s a huge win, within our grasp.”

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France EV Bonus Eligibility Rules prioritize lifecycle carbon footprint, manufacturing emissions, battery sourcing, and transport impacts, reshaping electric car incentives and excluding many China-made EVs while aiming for WTO-compliant, low-emission industrial policy.

Key Points

France's EV bonus rules score lifecycle emissions to favor low-carbon models and limit incentives for China-made EVs.

✅ Scores energy, assembly, transport, and battery criteria

✅ Likely excludes China-made EVs with coal-heavy production

✅ Aims to align incentives with WTO-compliant climate goals

France has published new eligibility rules for electric car incentives to exclude EVs made in China, even though carmakers in Europe do not have more affordable rival models on the French market.

WHY IS FRANCE REVISING ITS EV BONUS ELIGIBILITY RULES?
The French government currently offers buyers a cash incentive of between 5,000 and 7,000 euros in cash for eligible models to get more electric cars on the road, at a total cost of 1 billion euros ($1.07 billion) per year.

However, in the absence of cheap European-made EVs, a third of all incentives are going to consumers buying EVs made in China, a French finance ministry source said. The trend has helped spur a Chinese EV push into Europe and a growing competitive gap with domestic producers.

The scheme will be revamped from Dec. 15 to take into account the carbon emitted in a model's manufacturing process.

President Emmanuel Macron and government ministers have made little secret that they want to make sure French state cash is not benefiting Chinese carmakers.

WHAT DO THE NEW RULES DO?
Under the new rules, car models will be scored against government-set thresholds for the amount of energy used to make their materials, in their assembly and transport to market, as well as what type of battery the vehicle has.

Because Chinese industry generally relies heavily on coal-generated electricity, the criteria are likely to put the bonus out of Chinese carmakers' reach.

The government, which is to publish in December the names of models meeting the new standards, says that the criteria are compliant with WTO rules because exemptions are allowed for health and environmental reasons, and similar Canada EV sales regulations are advancing as well.

WILL IT DO ANYTHING?
With Chinese cars estimated to cost 20% less than European-made competitors, the bonus could make a difference for vehicles with a price tag of less than 25,000 euros, amid an accelerating global transition to EVs that is reshaping price expectations.

But French car buyers will have to wait because Stellantis' (STLAM.MI) Slovakia-made e-C3 city car and Renault's (RENA.PA) France-made R5 are not due to hit the market until 2024.

Nonetheless, many EVs made in China will remain competitive even without the cash incentive, reflecting projections that within a decade many drivers could be in EVs.

With a starting price of 30,000 euros, SAIC group's (600104.SS) MG4 will be less expensive than Renault's equivalent Megane compact car, which starts at 38,000 euros - or 33,000 euros with a 5,000-euro incentive.

Since its 46,000-euro starting price is just below the 47,000-euro price threshold for the bonus, Tesla's (TSLA.O) Y model - one of the best selling electric vehicles in France - could in theory also be impacted by the new rules for vehicles made in China.

S&P Global Mobility analyst Lorraine Morard said that even if most Chinese cars are ineligible for the bonus they would probably get 7-8% of France's electric car market next year, even as the EU's EV share continues to rise, instead of 10% otherwise.

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Ukraine Green Fightback advances renewable energy, energy independence, and EU integration, rebuilding war-damaged grids with solar, wind, and storage, exporting power to Europe, and scaling community microgrids for resilient, low-carbon recovery and REPowerEU alignment.

Key Points

Ukraine Green Fightback shifts to renewables and resilient grids, aiming 50% clean power by 2035 despite wartime damage.

✅ 50% renewable electricity target by 2035, up from 15% in 2021

✅ Community solar and microgrids secure hospitals and schools

✅ Wind and solar rebuild capacity; surplus exports to EU grids

Two years after severing ties with Russia's power grid, Ukraine stands defiant, rebuilding its energy infrastructure with a resolute focus on renewables. Amidst the ongoing war's devastation, a remarkable green fightback is taking shape, driven by a vision of a self-sufficient, climate-conscious future.

Energy Independence, Forged in Conflict:

Ukraine's decision to unplug from Russia's grid in 2022 was both a strategic move and a forced necessity, aligning with a wider pushback from Russian oil and gas across the continent. While it solidified energy independence aspirations, the full-scale invasion pushed the country into "island mode," highlighting vulnerabilities of centralized infrastructure.

Today, Ukraine remains deeply intertwined with Europe, inching towards EU accession and receiving global support, as Europe's green surge in clean energy gathers pace. This aligns perfectly with the country's commitment to environmental responsibility, further bolstered by the EU's own "REPowerEU" plan to ditch fossil fuels.

Rebuilding with Renewables:

The war's impact on energy infrastructure has been significant, with nearly half damaged or destroyed. Large-scale renewables have borne the brunt, with 30% of solar and 90% of wind farms facing disruption.

Yet, the spirit of resilience prevails. Surplus electricity generated by solar plants is exported to Poland, showcasing the potential of renewable sources and mirroring Germany's solar power boost across the region. Ambitious projects are underway, like the Tyligulska wind farm, Ukraine's first built in a conflict zone, already supplying clean energy to thousands.

The government's vision is bold: 50% renewable energy share by 2035, a significant leap from 2021's 15%, and informed by the fact that over 30% of global electricity already comes from renewables. This ambition is echoed by civil society groups who urge even higher targets, with calls for 100% renewable energy worldwide continuing to grow.

Community-Driven Green Initiatives:

Beyond large-scale projects, community-driven efforts are flourishing. Villages like Horenka and Irpin, scarred by the war, are rebuilding hospitals and schools with solar panels, ensuring energy security and educational continuity.

These "bright examples," as Svitlana Romanko, founder of Razom We Stand, calls them, pave the way for a broader green wave. Research suggests replacing all coal plants with renewables would cost a manageable $17 billion, paving the way for a future free from dependence on fossil fuels, with calls for a fossil fuel lockdown gaining traction.

Environmental Cost of War:

The war's ecological footprint is immense, with damages exceeding €56.7 billion. The Ministry of Environmental Protection and Natural Resources is meticulously documenting this damage, not just for accountability but for post-war restoration.

Their efforts extend beyond documentation. Ukraine's "EcoZagroza" app allows citizens to report environmental damage and monitor pollution levels, fostering a collaborative approach to environmental protection.

Striving for a Greener Future:

President Zelenskyy's peace plan highlights ecocide prevention and environmental restoration. The ministry itself is undergoing a digitalization push, tackling corruption and implementing EU-aligned reforms.

While the European Commission's recent progress report acknowledges Ukraine's strides, set against a Europe where renewable power has surpassed fossil fuels for the first time, the "crazy rhythm" of change, as Ecoaction's Anna Ackermann describes it, reflects the urgency of the situation. Finding the right balance between war efforts and green initiatives remains a crucial challenge.

Conclusion:

Ukraine's green fightback is a testament to its unwavering spirit. Amidst the darkness of war, hope shines through in the form of renewable energy projects and community-driven initiatives. By embracing a green future, Ukraine not only rebuilds but sets an example for the world, demonstrating that even in the face of adversity, sustainability can prevail.

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