Friday, February 3, 2023
News 20% of New Vehicles Need to be Zero Emission in Canada by...

20% of New Vehicles Need to be Zero Emission in Canada by 2026

  • The goal is 20% of zero-emission vehicle sales by 2026.

  • Ottawa is still confident to reach its 100% of zero emission vehicles sales by 2035.

  • Last year, only 5,2% of vehicle sales were from the zero emission segment.

The Canadian government, led by Environment Minister Steven Guilbeault, has unveiled its new zero-emission vehicle objectives. Starting in 2026, Canada intends to require manufacturers to have one-fifth of their fleet sold as zero-emission vehicles.

This proposed regulation of 20% in 2026 would rise to 60% in 2030 and 100% by 2035. It should be noted that this is a new measure aimed at passenger vehicle owners only. Justin Trudeau’s government believes that this new standard will make it easier for Canadian motorists to buy more zero-emission vehicles, whether they are electric or hydrogen-powered.

Ottawa also intends to penalize manufacturers who fail to meet the 20% sales target by 2026 under the Canadian Environmental Protection Act.

The Canadian market has a long way to go before it reaches the 20% mark. In the first six months of 2022, electric and plug-in hybrid vehicles accounted for only 7.2% of sales, up from 5.2% in all of 2021.

As of this writing, the local market is still struggling with supply issues, the global crisis that is still giving automotive strategists headaches. These supply issues are limiting consumer access to zero-emission vehicles, causing some consumers to revert to more traditional options… and more polluting ones!

Canada also needs more public charging stations. With such high growth targets, the infrastructure will have to be improved to support the energy needs of all these new electric vehicles.

The proposed regulations, which will be filed on December 31, 2022, and followed by a 75-day comment period, also propose to track sales by issuing credits for zero-emission vehicle sales. Not surprisingly, electric vehicle sales would earn more credits than PHEV (plug-in hybrid) sales.

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