OTTAWA—Canada’s most recent emissions reduction progress report indicates that the country is on target to meet its interim climate goal and that the 2030 climate goal could be within reach. The report also contained three lines that stated “explore the potential to expand the Incentives for Zero Emission Vehicles (ZEV) program to include used vehicles,” however details remain scant. Neither Transport Minister Pablo Rodriguez nor Environment Minister Steven Guilbeaul’s office were willing or able to comment on whether discussion regarding the expansion of the initiative were in progress.
Minister Rodriguez’s office cited his latest ministerial mandate letter, reiterating his commitment to enhancing the accessibility and expediting the adoption of ZEVs, including used vehicles, among Canadian households and businesses.
However, the mandate saliently fails to include any reference to incentives for used ZEVs, while the government report contains the first mention from Ottawa to potentially move in that direction. Provinces including Nova Scotia, New Brunswick and Quebec are already offering consumers incentives to purchase used electric vehicles.
During a news conference held on December 22, 2023, Minister Guilbeault did not give the impression of being aware of the feds considering of this shift, despite his name being on the cover of the report. “Presently, federally, the purchase incentive stands at $5,000, and that’s the outlined plan for our progression,” he told reporters. “What lies ahead in the future? Will there be alterations? Will we adjust it? I’m uncertain.”
In mid-December, the federal government revealed finalized regulations mandating that all new vehicle sales, encompassing cars, SUVs and select pick-up trucks, must be entirely electric, plug-in hybrid, or fuel cell electric by 2035.
“There’s no mistaking it. We are at a tipping point,” Minister Guilbeault said, noting sizable growth in EV sales in Canada and demand that has previously outstripped the available supply.
Car manufacturers will undergo a 12-year transition period to phase out traditional combustion engine cars, trucks and SUVs. They will be required to gradually expand the proportion of electric models they offer for sale annually. The forthcoming electric vehicle sales mandate regulations will establish a framework where each automaker must demonstrate that a certain minimum percentage of their vehicle lineup comprises fully electric or extended-range plug-in hybrids.
This initiative gets underway with a target of 20 percent in 2026, progressing incrementally to 23 percent in 2027. Subsequently, the adoption of electric vehicles accelerates significantly, with an aim for 34 percent of all vehicle sales in 2028, escalating to 43 percent by 2029 and reaching 60 percent by 2030. This upward trajectory continues until it culminates in a complete shift to 100 percent electric vehicle sales by 2035.
Since 2016, the Government of Canada has selected over 42,000 electric vehicle chargers for funding and is expected to deploy 84,500 by 2029. Over 50 models qualify for the federal ZEV purchase incentive in 2023, an 80 percent increase from 2019.
Joanna Kyriazis, director of public affairs for Clean Energy Canada, emphasized, “The used vehicle market is expanding, and only some Canadians can afford a new vehicle, regardless of it being gas-powered or electric. Smoothing the path for the purchase of used electric cars for lower and middle-income individuals and tapping into the substantial cost savings they offer would be a meaningful stride forward.
The Canadian Vehicle Manufacturers’ Association, speaking on behalf of Ford, Stellantis and General Motors, underscored that augmenting the federal incentive program to include used ZEVs might motivate skeptical drivers to transition if the incentives were made sizeable enough. Brian Kingston, the association’s president and CEO, noted, “While a slightly reduced incentive for used vehicles could work, it’s crucial to ensure it remains robust enough to assist Canadians in embracing a new technology that still raises concerns and queries among people.”
While certified training programs have been designed to train a new generation of electric vehicle specialists to work in electric vehicle production, repair and maintenance, the federal government has yet to announce any incentives for operating automotive repair shops to retool or retrain their current employees.
