Canada proposes regulations setting sales targets for ZEVs

Canada proposes regulations setting sales targets for ZEVs

Canada has published proposed regulations that establish zero-emission vehicle (ZEV) sales targets for manufacturers and importers of new passenger cars, sport utility vehicles (SUVs), and pickup trucks. The regulations will require that at least 20% of new vehicles sold in Canada will be zero emission by 2026, at least 60% by 2030, and 100 % by 2035.

With these proposed regulations, Canada joins the European Union, the United Kingdom, and several American states, including California.

Federal funding includes CAD900 million (USD663 million) through the 2030 Emissions Reduction Plan, including CAD500 million (USD368 million)  for the Canada Infrastructure Bank, to build 50,000 more charging stations, adding to the CAD1 billion (USD737 million) the Government of Canada has invested since 2016.

Canadians are invited to submit their feedback on the proposed regulations during the 75-day consultation period. Final regulations are expected to be published in 2023.

“Helping Canadians make the switch to zero-emission vehicles is crucial for reaching our climate goals: it keeps our air clean and helps people save money, all while positioning Canada as a leader on building cleaner vehicles. Today's announcement is a key deliverable under Canada's Action Plan for Clean On-Road Transportation. These regulations will help to ensure Canada can meet its ambitious ZEV sales targets, reduce pollution on our roads, and achieve net-zero emissions by 2050,” said Canada’s Minister of Transport Omar Alghabra.

The government also announced the following investments to make buying and charging an electric vehicle (EV) easier for Canadians:

  • Invested in 50,000 more EV charging stations across Canada, for almost 85,000 federally-funded chargers across Canada by 2027. This is in addition to charging stations supported by provincial governments and the private sector.
  • Renewed the program that provides Canadians up to CAD5,000 (USD3,685), and businesses up to CAD10,000 (USD7,370), toward the cost of buying or leasing a ZEV. More than 180,000 individuals and businesses have taken advantage of this program to date.
  • Making historic investments in EV manufacturing in Canada.

“With Canada’s deep experience in auto-parts manufacturing, vehicle assembly, and with all of the critical minerals needed for batteries found here, Canada is well positioned to be a leader in making the vehicles that the world is looking to drive. With ZEVs, we can cut pollution, create jobs, and make life more affordable for families across the country,” said Canada’s Minister of Environment and Climate Change Steven Guilbeault,