Electric Vehicles Outperform ICE Vehicles in Emissions, According to TD Economics
Toronto, Ontario – A recent study published by TD Economics highlights the substantial emissions advantages of electric vehicles (EVs) over their internal combustion engine (ICE) counterparts throughout their lifecycles. The study emphasizes that while EV production initially involves a higher carbon footprint due to battery manufacturing, the long-term fuel-related emissions from ICE vehicles ultimately create a significant emissions gap in favor of EVs.
“Electric vehicles have significantly lower lifecycle emissions,” the report states. This is driven by the fact that ICE vehicles release greater emissions from fuel consumption over their lifespan.
The report further points out the benefits regarding the emissions from plug-in hybrid electric vehicles (PHEVs), which also exhibit lower emissions, although the savings are not as great as those of battery electric vehicles (BEVs). The degree to which a PHEV relies on its electric system for propulsion plays a crucial role in determining the magnitude of its emissions reduction.
Even in provinces and territories still reliant on fossil fuel-based electricity generation, the study notes that battery electric vehicles still emit less than their ICE counterparts due to their higher energy efficiency. The average emissions savings for BEVs across different vehicle classes, considering Canada’s overall electricity grid mix, range from 70 to 77 percent.
“This relationship holds even in a scenario where a BEV’s lithium-ion battery is replaced before the vehicle reaches its end of life,” the report states, although the emissions savings in that case decline to between 59 and 69 percent.
The study also raises concerns that factors such as the lack of affordable EV models and the potential rollback of government rebate programs could impede the shift towards wider EV adoption, ultimately slowing the pace of emissions reduction.
Originally published March 5, 2025
