Federal Government Targets Full Zero-Emissions Vehicle Sales by 2035

Environment Minister Steven Guilbeault is ready to publish new regulations to support existing targets for electric vehicle sales in the country.

The rules aim to essentially end the sales of passenger vehicles powered solely by gas or diesel in 2035, but the new legislation lays out supporting measures.

Under the Electric Vehicle Availability Standard, zero-emissions vehicle targets will start in 2026. That year, at least 20 per cent of new light-duty vehicles offered for sale by an automaker must be zero-emissions vehicles (ZEVs). The requirement will increase annually, hitting 60 per cent in 2030, and 100 per cent in 2035.

The government estimates that this will "help end the use of polluting light-duty vehicles by 2050." That's using the current average vehicle age of 15 years.

Under the regulations, zero-emissions vehicles will include pure electric vehicles (EVs) and fuel-cell vehicles powered by hydrogen. It will also include plug-in hybrid (PHEV) models, which run on electricity for some distance before switching over to gas. So even by 2035, new vehicles with internal combustion engines will still be allowed to be sold under the new legislation, as long as they have the ability to run on electricity.

The government says that the legislation will help ensure the supply of ZEV models keeps up with demand. It will do that by forcing automakers to ensure a minimum number of ZEV models are offered at dealers. The government also plans to continue the current iZEV program, which offers buyers up to $5,000 in incentives for new zero-emissions vehicles to help maintain affordability.

Automakers will get credits for current ZEV sales they can carry forward if they fail to meet targets in future years. They will also be able to earn credits by building DC fast charging stations, earning one credit (equivalent to one EV sale) for every $20,000 spent on charging stations in service before 2027. Both of those parts of the legislation aim to kickstart automakers with an incentive not to wait until 2027 to sell ZEVs here.