The Canadian government has announced a set of quotas for zero-emission vehicle sales, which will require that at least 20% of all new passenger cars, trucks, and SUVs sold in the country by 2026 be zero-emission models, such as electric or hydrogen fuel cell vehicles. This requirement is expected to increase to 60% by 2030 and 100% by 2035.
These quotas are expected to lead to savings of almost $34 billion CAD in energy costs for Canadians between 2026 and 2050 and reduce greenhouse gas emissions equivalent to Ontario’s entire emissions for three years. Currently, passenger vehicle emissions make up about 10% of Canada’s total greenhouse gas emissions.
While Canada already had non-enforceable zero-emission vehicle sales targets in place, the government has announced enforceable quotas that will require at least 20% of all new passenger cars, trucks, and SUVs sold in the country by 2026 to be zero-emission models, such as electric or hydrogen fuel cell vehicles.
This requirement is expected to increase to 60% by 2030 and 100% by 2035. The final regulations are expected to be published in 2023 and non-compliant importers and manufacturers may be penalized under the Canadian Environmental Protection Act. The country will use credits to track vehicle sales.
As of the first six months of 2022, EVs (including plug-in hybrid models) made up 7.2% of new car registrations in Canada, with higher proportions in certain provinces such as British Columbia (15%), Quebec (11.4%), and Ontario (5.5%). In all other provinces, EVs accounted for less than 4% of new vehicle sales.
The Canadian government has announced that by 2026, 20% of all new passenger vehicles sold in the country must be zero-emission models, such as electric or hydrogen fuel cell vehicles. This target is set to increase to 60% by 2030 and 100% by 2035. These enforceable quotas are expected to result in Canadians saving almost CAD 34 billion in energy costs between 2026 and 2050 and a reduction in greenhouse gas emissions equivalent to three years of Ontario’s total emissions.
While Canada already has zero-emission vehicle sales targets, they are not yet enforceable nationwide. The final regulations are set to be published in 2023 and those who do not meet the quotas may be penalized under the Canadian Environmental Protection Act. Incentives, including rebates on zero-emission vehicle purchases and the installation of 85,000 federally funded public chargers by 2027, are expected to help increase adoption of EVs in the country.
