Canadian Government Sets Deadline for All New Vehicles to Be Zero Emission by 2035, Industry Expresses Displeasure

Canada’s Finalizes Mandate for Zero-Emission Vehicle Sales by 2035

Canada recently unveiled its Electric Vehicle Availability Standard, mandating that all passenger cars, SUVs, crossovers, and light trucks sold by 2035 must be zero-emission vehicles. This regulation is part of the government’s comprehensive plan to combat climate change. The new rules, originally introduced in 2021, aim to ensure the availability of supply in the market and reduce wait times for electric vehicle (EV) purchases.

To meet interim targets, zero-emission vehicles must account for at least 20% of all car sales by 2026 and at least 60% by 2030. Current statistics show that EVs made up 12.1% of new vehicle sales in the third quarter of 2023.

The Canadian automotive industry has expressed concerns about the ambitious regulations, highlighting the higher costs of electric vehicles and the incomplete charging network, particularly in rural areas. However, to address complaints about EV practicality in remote and northern regions, where cold conditions can affect battery efficiency, plug-in hybrid electric vehicles (PHEVs) with an all-electric range of 80km or more will remain eligible for sale in 2035 and beyond.

It is important to note that the Canadian regulations are similar to those adopted by California, which states that 100% of new cars sold in 2035 must be PHEVs, EVs, or powered by hydrogen fuel cells. These regulations have also been agreed upon by 17 U.S. states.

As the global electric vehicle market continues to grow, accounting for about 13% of all vehicle sales currently and likely to rise to between 40%-45% by the end of the decade, the Canadian government aims to position itself as a leader in sustainable transportation. While there are challenges to overcome, such as affordability and charging infrastructure, Canada’s move toward promoting zero-emission vehicles is a critical step in achieving a low-carbon future.

Ultimately, the shift toward EVs will contribute to reducing Canada’s greenhouse gas emissions, particularly in the transportation sector, which accounts for approximately 22% of the country’s total emissions. This move aligns with the global effort to address climate change and transition toward clean energy solutions.