Ottawa’s plan to make 100% of new car and truck sales zero-emission vehicles (ZEV) by 2035 includes incentives for automakers to build chargers and bring new models to Canada sooner. It is included.
Federal Environment Minister Stephen Guilbeault on Tuesday announced the final version of the Electric Vehicle Availability Standard. The policy includes a goal announced last December that all new cars, SUVs and pickup trucks sold in Canada be ZEVs by 2035.
The ZEV category includes battery electric models, plug-in hybrid models, and hydrogen models. The 20% sales target starts with the 2026 model year and increases annually to 60% by 2030.
British Columbia and Quebec already have comparable provincial sales targets.
According to Statistics Canada, ZEVs accounted for 12.1% of new vehicle registrations in the third quarter of 2023. This number represents the highest market share ever for this category.
Although sales have increased in recent quarters, consumers are still worried about long wait times at dealerships to buy electric models, chargers are unevenly placed across the country, and comparable gasoline prices. and are dissatisfied with the high price compared to diesel-only models.
“This standard addresses one of the main barriers for people to buy EVs: limited availability and long wait times. We will do this by ensuring that more electric vehicles enter the Canadian market,” Guilbeault told reporters at a press conference in Toronto. “This will ensure Canadians have access to their fair share of the world’s supply.”
He added that ZEVs often have lower maintenance and fuel costs, and prices are coming down.
Under the policy announced on Tuesday, automakers will earn credits for ZEVs sold in 2024 and 2025. Excess credits can be banked and traded and carried over for up to five model years.
Businesses can also earn credits by investing in charging infrastructure. Eligible projects must include new fast-charging stations and must remain in operation for five years. The government says you can get one credit for every $20,000 invested, subject to certain price limits.
Guilbeault said violating companies will be subject to fines from Environment and Climate Change Canada.
Finance Committee Chair Anita Anand called the plan to phase out fossil fuel vehicle sales a “game changer” at a media event Tuesday at George Brown University in Toronto, saying the federal government He added that there is a need to set an example in the transition of fleets.
“We intend to incentivize companies to do more by providing credits for charging investments by automakers and giving predictability to investors in charging services,” he said.
Hyundai Motor’s Canadian subsidiary said in a statement Tuesday that the policy is “a step in the right direction.” However, South Korean automakers warn that improving vehicle availability is only part of what is needed to meaningfully grow ZEV sales.
“Achieving the government’s goals will require dedicated investment in charging infrastructure, especially for Canadians living outside of urban centres,” said Don Romano, president and CEO of Hyundai Auto Canada. It’s necessary.”
Electric Mobility Canada hails this policy as a win for Canadians. National advocacy groups say it’s no coincidence that Quebec and British Columbia, where ZEV sales regulations have been in place for some time, lead the nation in sales.
“They are winning by expecting more choice, shorter wait times and better prices,” President and CEO Daniel Breton said in a news release Tuesday. . “The Canadian economy and EV ecosystem wins because we ensure that Canadians have access to EVs that are manufactured in Canada. It also helps Canadian businesses, not to mention public and residential charging infrastructure. It ensures market predictability.”
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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