Economy of Quebec
The economy of Quebec is diversified and post-industrial with an average potential for growth. It is highly integrated with the economies of the rest of Canada and the United States. Manufacturing and service sectors dominate the economy.
The economic heart of Quebec is the Montreal metropolitan area where half of Quebecers live. This region alone accounts for 53.4% of the province's gross domestic product, followed by the Quebec City metropolitan area, Gatineau, Sherbrooke, Saguenay and Trois-Rivières. In total, Quebec's GDP at market prices was CAD 381 billion or 19% of Canada's GDP.
For 2022-23, Quebec's budget was C$136.6 billion. This budget planned to provide $8,9 billion more to the healthcare sector over 5 years. Like most industrialized countries, the economy of Quebec is based mainly on the services sector. Quebec's economy has traditionally been fuelled by abundant natural resources, well-developed infrastructure, and average productivity. The provincial GDP in 2021 was C$504,5 billion, making Quebec the second largest economy in Canada after Ontario.
The provincial debt-to-GDP ratio peaked at 50.7% in fiscal year 2012–2013, is now resting at 38.1 in 2022, and is projected to decline to 34% in 2023–2024. The credit rating of Quebec is currently Aa2 according to the Moody's agency. In June 2017, Standard & Poor's rated Quebec as an AA− credit risk, surpassing Ontario for the first time.
Quebec's economy has undergone tremendous changes. Firmly grounded in the knowledge economy, Quebec has one of the highest growth rate of GDP in Canada. The knowledge sector represents about 31% of Quebec's GDP. In 2011, Quebec experienced faster growth of its research-and-development spending than other Canadian provinces. Quebec's spending in R&D in 2021 was equal to C$4.1B or, above the European Union average of 1.8%. The percentage spent on research and technology is the highest in Canada and higher than the averages for the Organisation for Economic Co-operation and Development and G7 countries. Approximately 1.1 million Quebecers work in the field of science and technology.
Economic policies
Environmental and energy policy
Since 2006, Quebec has a green plan in order to achieve the objective of the Kyoto protocol on climate change. The Ministère du Développement durable, de l'Environnement et des Parcs du Québec is primarily responsible for implementing environmental policy. For its part, the Société des établissements de plein air du Québec is the lead agency for the management of national parks and wildlife reserves. Quebec currently protects nearly 8.12% of its territory. The first protected area was the creation of Mt. Royal Park in 1876 followed by the Mont-Tremblant National Park in 1894.The Quebec government has been working to introduce the electric car since 1994, including contributing financing for technologies such as the TM4 MФTIVE, an electric motor designed and manufactured in Quebec. Hydro-Québec has recently tested more than 50 i-MiEV in order to gradually introduce the charging stations across the province. This is the largest pilot test of electric cars in Canada. Quebec was the first province in Canada to allow the ZENN car to drive on the roads. During the inaugural speech of 2011, Jean Charest announced five priorities for the next 30 years including the Plan Nord and called for a revolution in electric cars.
On November 23, 2009, Premier Jean Charest announced targets for reducing greenhouse gases during the United Nations Climate Change Conference in Copenhagen. Quebec will cut its emissions by 20% by the year 2020 compared to international reference of 1990. On January 14, 2010, a new law came into force to reduce greenhouse gases from automobiles which represent 40% of Quebec GHGs. This new law stipulates that car manufacturers serving the territory of Quebec must meet an emission ceiling of 187 grams of GHG/km or approximatively 7.7 L/100 km. This level must be reduced annually up to 127 grams of GHG/km or approximatively 5.3 L/100 km in 2016. These standards are as stringent as those in California, according to the Government of Quebec. The provincial government plans to offer up to $8,000 rebate towards the purchase of an electric car. The government hopes that by 2020, a quarter of cars purchased in Quebec will be electric. The plan would position Quebec as a world leader in electrified transportation according to Jean Charest.
File:Tata Indica EV Engine bay.jpg|left|thumb|Tata Indica EV engine bay featuring TM4 MФTIVE electric motor
Quebec became the first region in North America to set a carbon tax. Since 2007, consumers pay a special tax on gasoline. Since July 2011, Quebec has imposed a carbon tax that affect more than 85% of industries in the province. This tax will be mandatory from 2013. The sectors affected by this carbon tax will have to reduce their carbon dioxide below 25 000 kilotonnes per year. Only the forest industry, agriculture and waste industries are not affected by this tax. In addition, the Quebec government plans to recover 60% of putrescible organic matter by 2015 in order to reduce its emissions. Quebec climate policy has been harshly criticised by the federal government under Prime minister Stephen Harper. In 2010, former minister Jim Prentice has openly criticized Quebec's plan to set GHG standards for motor vehicles sold in the province, describing it as "lunatic". However, ten months later, Prentice successor, John Baird, has praised Quebec as a world leader in GHG abatement.
Electric vehicles
Quebec is a leader in the transition to electric vehicles in Canada and beyond. According to the latest data from Statistics Canada, Quebec had the highest number of EV registrations in the first quarter of 2022, with 7,522 vehicles. This accounted for 9.2% of the total new vehicle registrations in the province. Quebec was followed by Ontario, with 5,688 EV registrations and British Columbia, with 5,385 EV registrations. The latter number includes the territories.Quebec also led the country in EV market share for the whole year of 2022, with 36.7% of new vehicle registrations being electric. Ontario was second, with 31.5%, and B.C. was third, with 23.9%. These three provinces accounted for over 90% of the total EV registrations in Canada in 2022. Quebec's high EV market share can be attributed to several factors, such as its abundant hydroelectricity, its rich mineral resources, its strong government support, and its competitive fuel economy and cost.
The province has set ambitious targets to achieve carbon neutrality by 2050, put 1.5 million EVs on the road in Quebec by 2030, and electrify 55% of city buses and 65% of school buses by 20301. To support these goals, the Quebec government has announced various measures in the recent budget for 2022–2023.
One of these measures is a reduction in rebates available for the purchase of EVs, from $8,000 to $6,000 for new vehicles and from $4,000 to $3,000 for used vehicles. This decision reflects the growing demand and affordability of EVs in the province, as well as the need to ensure the sustainability of the program. However, the government has also allocated new funds for EV charging infrastructure and building out the province's EV battery supply chain.
Federal Energy and Natural Resources Minister Jonathan Wilkinson announced nearly $30 million in funding for the installation of more than 1,500 new electric vehicle charging stations in Quebec. The Quebec government announced that they are adding more than 116,000 additional charging stations to the province by investing more than $514 million over the next five years. This will increase the accessibility and convenience of EV charging for drivers and reduce range anxiety across the province.
Battery supply chain
Quebec is on track to become a major player in the electric vehicle industry, thanks to its ambitious strategy to develop a domestic battery supply chain. The province has several advantages, such as abundant hydroelectricity, rich mineral resources, and strong government support, that make it an attractive destination for EV battery manufacturing and related activities.The Quebec government has been actively promoting the adoption of EVs in the province and has allocated new funds for EV charging infrastructure and battery supply chain development. Investissement Québec, the province's investment arm, acts as a venture capitalist and provides substantial backing for critical mineral projects, giving a vote of confidence and enticing private capital. The province's battery sector development strategy, the , aims to develop a comprehensive battery supply chain in Quebec by acting as a catalyst for the sector's value chain.
Quebec has also attracted several major investments from global players in the battery industry. For instance, Northvolt has confirmed its joining Canada's EV battery manufacturing ecosystem with a 170-hectare, $7-billion, 60 GWh-capacity site, enough to power roughly one million EVs a year, that will provide 3,000 jobs in the McMasterville and Saint-Basile-le-Grand area. Ford Motor Co and Korean companies EcoProBM and SK On have announced that they will build a C$1.2 billion plant to produce EV battery materials in Becancour. BASF has announced that it plans to build a factory in Quebec to produce cathode active materials with production expected to start by 2025. Finally, the governments of Quebec and Canada are working closely with Volta Energy Solutions Canada Inc. on the establishment of a new copper foil facility in Granby. Copper foils are a core, high-value component in EV batteries, and this new installation will yet again reinforce Canada and Quebec's position as a key destination for the future of EV manufacturing.
These initiatives will help Quebec achieve its goal of developing its own complete domestic battery ecosystem and supporting clean technologies. Quebec is poised to become a leader in the EV industry and contribute to the global transition towards a low-carbon economy.