Tuesday, February 7, 2023
News Canada Extends its Incentives for the Zero-Emission Vehicles (iZEV) program

Canada Extends its Incentives for the Zero-Emission Vehicles (iZEV) program

Canada announced last summer that it will ban ICE sales by 2035. Now, it introduced its plan


  • Canada will invest a further $1.7 billion for the incentives program.

  • A mandate will be put into place to ensure minimum amounts of EV sales per year starting in 2026.


The goal for Canada, and other countries around the globe, is to reach net-zero emissions by 2050. Among numerous actions laid out in the 2030 Emissions Reduction Plan, the country will continue to make it easier for Canadians to switch over to EVs.

2022 Ford Mustang Mach-E GT | Photo: MAtt St-Pierre

The plan includes a number of steps that will be taken over the 13 years starting with the fact that the Canadian government will continue to provide funds for the Zero-Emission Vehicles (iZEV) program to the tune of $1.7 billion. This action will coincide with the government’s objective of adding 50,000 charging stations via a $400 million investment. Furthermore, the Canada Infrastructure Bank will invest $500 million in the ZEV charging infrastructure.

Canada will also introduce a mandate that will ensure that at least 20% of all new vehicle sales in 2026 will be EVs. That figure will have to jump to over 60% by 2030 on the way to the nation’s target of 100% come 2035. Medium- and heavy-duty vehicle (MHDVs) sales will need to follow a similar albeit less stringent calendar.

Canada To Ban New ICE Vehicles By 2035

The interim goal is to lower emissions to 31% below 2005 levels in 2030 (or to 42% below 2019 levels).

The only real obstacles to these new EV sales projections are availability and costs. In 2021, just over 1.6 million new vehicles were sold in Canada (just over 2 million in 2017). Assuming volumes stay flat for the next few years, this means that, for the mandate to work, more than 325,000 new EVs will need to be sold in 2026.

Most automakers are dealing with massive production and delivery delays. Many have already pushed back delivery dates well into 2024. These well-known global issues could severely and negatively affect the Canadian government’s efforts.

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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