Canada’s new electric vehicle availability regulations will require automakers to make at least 20 per cent of the vehicles they put on sale in 2026 either fully electric or plug-in hybrids.
This share must increase each year, reaching 60% in 2030 and 100% in 2035.
Federal Environment Minister Steven Guilbeault presented details of his plan on Tuesday to gradually eliminate the sale of gasoline vehicles in Canada.
During the first three months of 2023, approximately one in ten new vehicles registered was electric in the country.
Automakers that fail to meet their sales targets will be able to cover the difference by purchasing credits from other manufacturers that have exceeded their targets or by investing in charging stations.
The transport sector as a whole represents around a quarter of global greenhouse gas (GHG) emissions.
Health Canada data shows that air pollution from road vehicles “contributes to approximately 1,200 premature deaths and millions of cases of non-fatal health problems each year, with a total economic cost estimated at $9.5 billion.” dollars per year.
More restrictive standards in Quebec
Quebec and British Columbia already have mandates for the sale of electric vehicles.
In Quebec, the sale of electric vehicles must reach 32.5% in 2026, 60% in 2028, 85% in 2030 and 100% in 2035.
The standard put in place by the Legault government is therefore more severe than that of the federal government. During a technical briefing for the media, officials from Environment and Climate Change Canada explained that the federal standard is independent of that of the provinces. If provincial standards are more restrictive, builders must therefore comply with them.
Two-thirds of all electric vehicles sold in Canada this year were in Quebec and British Columbia, while they represent about two-fifths of total vehicle sales.
According to Environment and Climate Change Canada, “the data from Quebec, British Columbia, and other countries is clear: when combined with supportive investments, a regulated ZEV target expands the consumer choice, improves air quality and accelerates the transition from gasoline-powered vehicles to ZEVs.
The Regulation uses the term “zero-emission vehicle” (ZEV) and includes battery electric vehicles (BEV) running on electricity alone, fuel cell electric vehicles (FCEV) running on hydrogen and hybrid electric vehicles plug-in vehicles (PHEVs) that can operate “exclusively on electricity for a minimum distance determined before any transition to operate as hybrid vehicles, using both liquid fuels and electricity”.
Less waiting and more vehicles
In 2023, more than 50 ZEV models are available in Canada. This is an 80% increase from 2019.
According to Anna Kanduth, director of the 440 megatonne project at the Climate Institute of Canada, the new regulations will help shorten the waiting time to obtain electric vehicles.
“The new Canadian regulations are similar to measures announced or implemented in the European Union, the United Kingdom and several American states. It also builds on the success of Quebec and British Columbia, where the regulation of sales of zero-emission vehicles has made it possible to increase the supply of electric vehicles and stimulate their sales compared to provinces which do not do not benefit from this type of support measures,” said Anna Kanduth.
According to Environment and Climate Change Canada, the automobile industry has announced the arrival of 41 additional models in Canada in 2024.
In response to Ottawa’s announcement, the Global Automakers of Canada association called for the creation of a “dedicated forum” that would allow the federal government to engage with automakers, the energy sector and consumer groups.
The association argues that obstacles remain to the application of the new regulation, including the distribution of sufficient electricity, the creation of suitable charging infrastructure, the cost of electric vehicles and consumer education .
According to the director of this national association, David Adams, Canadians “consistently cite the limited infrastructure and high cost of electric vehicles as major obstacles to the adoption of zero-emission vehicles.”
Canada has more than 25,000 public electric vehicle charging stations. The federal government has allocated more than 1.2 billion in projects aimed at manufacturing nearly 84,500 charging stations by 2027. In Quebec, the Legault government plans to invest 514 million to install 116,000 public charging stations by 2030.