Minister of Transport announces the expansion of the Incentives for Zero-Emission Vehicles Program
April 22, 2022 Markham, Ontario Transport Canada
Clean air, good jobs, and lower bills – Canadians have been clear about what they want. The Government of Canada is continuing to deliver on those priorities. Today, on Earth Day, the Minister of Transport, the Honourable Omar Alghabra, announced additional details of key measures that will help Canadians make the switch to a zero-emission vehicle that cuts pollution and lowers everyday expenses.
The Incentives for Zero-Emission Vehicles Program has already helped Canadians purchase or lease over 141,000 new zero-emission vehicles since 2019. Starting April 25, 2022, the program will be expanded to include the purchase of additional vehicle models popular with Canadians, such as minivans, light-duty pickup trucks, and SUVs.
To be eligible:
- A car must have a base model Manufacturer’s Suggested Retail Price that is less than $55,000. Higher priced versions of these vehicles, up to a maximum Manufacturer’s Suggested Retail Price of $65,000, are also eligible.
- Larger zero-emission vehicles (e.g., sports utility vehicles, minivans and pick-up trucks) must have a base model Manufacturer’s Suggested Retail Price under $60,000. Higher priced versions of these vehicles, up to a maximum of $70,000, are also eligible.
To accelerate the manufacturing and adoption of cleaner cars, the Government of Canada will also put in place a sales mandate so at least 20 per cent of new passenger vehicles sold in Canada will be zero-emission vehicles by 2026, and at least 60 per cent by 2030, on the road to 100 per cent by 2035.
In addition, the Government of Canada will launch a strategy to reduce pollution from medium- and heavy-duty vehicles with the aim of having these vehicles make up 35% of total sales of zero-emission vehicles by 2030. This will include developing medium- and heavy-duty zero-emission vehicles regulations to require 100% medium- and heavy-duty sales to be zero-emission vehicles by 2040 for certain types of medium- and heavy-duty vehicles.
Further details on the medium- and heavy-duty vehicles strategy will be announced over the summer.
“Helping Canadians make the switch to a zero-emission vehicle is win-win-win: it keeps our air clean, helps people save money on fuel, all while positioning Canada as a leader on building and powering these cars. Today’s announcement is about making sure Canadians have the options they need – whether you want to make your next family car, or your ride to work, a zero-emission vehicle.”
The Honourable Omar Alghabra
Minister of Transport
“Our government understands that as Canadians transition to zero-emission vehicles, it will play an instrumental role in ensuring a cleaner and greener future. That’s why we are working to build a sustainable automotive ecosystem with clean energy, green steel, green aluminum and green batteries. And with today’s announcement, we are making sure that Canadians can be a part of this transition by ensuring more affordable vehicles.”
The Honourable François-Philippe Champagne
Minister of Innovation, Science and Industry
“Our government is advancing our commitment to a net-zero future. Through the expanded investments announced today, Canadians will have access to cleaner, more affordable transportation in their communities. Today’s investments, paired with our targets for 2030 and 2040, continue to lay the groundwork for Canada’s role as global leader in clean transportation.”
The Honourable Jonathan Wilkinson
Minister of Natural Resources
“The popular Incentives for Zero-Emission Vehicles Program is key to helping Canadians make the switch to cleaner cars. Switching to an electric vehicle is one of the most impactful things Canadians can do to help fight climate change. Our government will continue supporting the full supply chain of electric vehicles in Canada so that we can reduce our dependence on fossil fuels.”
The Honourable Steven Guilbeault
Minister of Environment and Climate Change
Budget 2022 proposes to invest $1.7 billion to continue the Incentives for Zero-Emission Vehicles Program until March 2025, including a broadening of the eligibility under the program. Today’s announcement provides details on eligibility for those investments.
Budget 2022 also proposes to:
- Provide $547.5 million over four years, starting in 2022-23, to launch a new purchase incentive program for medium- and heavy-duty zero-emission vehicles.
- Provide close to $34 million over five years, starting in 2022-23, to work with provinces and territories to develop and harmonize regulations and to conduct safety testing for long-haul zero-emission trucks.
- Build a national network of electric vehicle charging stations by supporting charging infrastructure in communities of all sizes through $500 million in changing infrastructure investments by the Canada Infrastructure Bank as well as $400 million for the Zero Emission Vehicles Infrastructure Program, toward the Government’s goal of adding 50,000 charging stations across the country.
In 2021, new zero-emission passenger vehicle sales reached 5.6 per cent market share according to IHS Markit, up from 3.8 per cent in 2020 and 3.1 per cent in 2019.
The transportation sector is Canada’s second-largest source of greenhouse gas emissions. Moving to zero-emission vehicles through regulations and investments is a significant part of Canada’s $9.1 billion Emissions Reduction Plan to meet Canada’s Paris Agreement target for 2030 and get on track for net-zero emissions by 2050.
The Government of Canada has changed the definition of longer-range plug-in hybrids to be based on electric range rather than battery capacity. This means that plug-in hybrid electric vehicles with an electric range of 50 km or more will be eligible for $5,000, and those under this threshold will continue to be eligible for $2,500.
Other measures in Budget 2022 to fight climate change include:
- $2.2 billion to renew and expand the Low Carbon Economy Fund to support emission reductions in communities across Canada;
- Significant new investments to protect our land, lakes, and oceans; and
- The creation of the $15 billion Canada Growth Fund to help attract tens of billions of dollars in private capital towards building a net-zero economy by 2050.
Office of the Honourable Omar Alghabra
Minister of Transport, Ottawa
Transport Canada, Ottawa
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