Thursday, February 22, 2024
News Canada Sets 2035 ZEV Mandate, But Some Gas Vehicles Still Count

Canada Sets 2035 ZEV Mandate, But Some Gas Vehicles Still Count

Canada's ZEV mandate set out

  • Targets start with 20 percent in 2027

  • ZEV rules include EV, FCEV, PHEV


Canada’s Zero Emissions Vehicle timeline rules were set out yesterday. The program puts an end-date on high polluters of 2035, but does not put an end to internal combustion engines in new cars.

The program is called the Electric Vehicle Availability Standard. The government is positioning it not as an EV mandate, but as a set of rules designed to make sure Canadians can get electric vehicles and that they’re not all being shipped to other countries (or provinces) with mandates of their own.

Targets start in 2026, where automakers are required that at least 20 percent of new light-duty vehicles offered for sale are ZEVs. ZEVs, but this standard, include EVs, hydrogen fuel-cell models, but also plug-in hybrid models. The final rules haven’t yet been published, so it’s not clear how much range a PHEV must have to meet the rule.

Requirements then tick up each year, hitting 60 percent in 2030 and 100 percent in 2035.

The penalties for not hitting targets will be monetary, but the amounts weren’t details. Automakers were given ways to help ensure they got a head start on the targets, though.

The head start includes earning credits toward future cars for ZEVs sold before the 2026 target starts. Automakers will be able to earn one vehicle credit for every $20,000 they spend on Level 3 DC fast chargers that open before 2027, as well. And automakers will be able to buy, sell, and trade extra credits.

The government said that it expects EV and gas car price parity by the end of the decade, which it says means savings for Canadians from day one. In the meantime, the feds will continue the iZEV program, adding a $2B spend to that program that gives buyers up to $5,000 for new ZEV purchases.

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