Let it roll: The Government of Canada moves to increase the supply of electric vehicles for Canadians
December 21, 2022 – Toronto, Ontario
Electric vehicles not only help keep our air clean, they can help families save money on monthly bills, too. Rising and unpredictable world oil prices and the growing desire by Canadians to lower their environmental footprint has more households and businesses looking to get off the gasoline and diesel roller-coaster by making the switch to zero-emission vehicles (ZEVs). When Canadians go to buy a new car, the Government of Canada is taking action to put more ZEVs on the roads.
Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, announced that the Government of Canada has published proposed regulations that set ZEV sales targets for manufacturers and importers of new passenger cars, SUVs, and pickup trucks. The regulations will require that at least 20 percent of new vehicles sold in Canada will be zero emission by 2026, at least 60 percent by 2030, and 100 percent by 2035. These targets will help increase supply so that more Canadians who want a ZEV can buy one.
In addition to making sure there are more ZEVs to buy, 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 the country, 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 $5,000, and businesses up to $10,000, toward the cost of buying or leasing a ZEV. Over 180,000 individuals and businesses have taken advantage of this program to date.
- Making historic investments in EV manufacturing in Canada, which will mean made-in-Canada ZEVs by Canadian auto workers and for Canadian drivers to buy.
The evidence from Quebec, British Columbia, and other jurisdictions with ZEV sales targets in place is clear: when combined with supportive investments, a zero-emission vehicle sales target accelerates the transition to clean cars and trucks. It also provides certainty to the private sector to support investments in charging infrastructure. With today’s proposed regulations, Canada joins jurisdictions such as the European Union, the United Kingdom, and several American states, including California.
The shift to zero-emission vehicles is good for our workers; for our automotive, battery, and mining supply chains; and for our economy, creating jobs and prosperity for generations of workers to come. The shift is good for our environment, keeping our air clean.
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.
“Zero-emission vehicles are where the rubber hits the road for cost-conscious Canadians who want to help the environment while getting off the roller-coaster of high gasoline prices. 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.”
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change
“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.”
– The Honourable Omar Alghabra, Minister of Transport
“Zero-emission vehicles are not only good for our environment, they also have a direct positive impact on our health. Reducing air pollution, created by gas emissions, means cleaner communities and healthier Canadians, which is exactly what these regulations will help achieve.”
– The Honourable Jean-Yves Duclos, Minister of Health
“An important part of our plan to achieve Canada’s climate commitments is through the decarbonization of our transport sector. Advancing the uptake of zero-emission vehicles means lower emissions, cleaner air, and good jobs for Canada’s auto workers. Today’s announcement is a key step toward ensuring that all light-duty vehicles sold in Canada by 2035 are non-emitting.”
– The Honourable Jonathan Wilkinson, Minister of Natural Resources
Federal funding includes $900 million through the 2030 Emissions Reduction Plan, including $500 million for the Canada Infrastructure Bank, to build 50,000 more charging stations, adding to the $1 billion the Government of Canada has invested since 2016.
Budget 2022 provided $1.7 billion for a renewed ZEV purchasing- or leasing-incentive program until March 2025.
Automakers have made it clear that the transition to electric vehicles is now firmly underway. Many have set their own ZEV sales targets. According to Statistics Canada, the share of new registration of light-duty ZEVs in Canada was 2.9 percent in 2019, 3.5 percent in 2020, and 5.2 percent in 2021, amounting to 86,000 vehicles. In the first half of 2022, 7.2 percent of new light-duty vehicles sold were ZEVs.
From 2026 to 2050, Canada’s proposed ZEV sales targets are estimated to save vehicle owners $33.9 billion in net energy costs, with incremental vehicle and home charger costs of $24.5 billion.
The cumulative greenhouse gas emission reductions from 2026 to 2050 from the proposed ZEV sale targets are estimated to be 430 million tonnes, valued at $19.2 billion in avoided global damages.
Office of the Minister of Environment and Climate Change
Environment and Climate Change Canada
819-938-3338 or 1-844-836-7799 (toll-free)
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