On Wednesday, Steven Guilbeault, Minister of Environment and Climate Change, announced that the Government of Canada has published proposed regulations that set ZEV sales targets for manufacturers and importers of new passenger cars, SUVs, and pickup trucks. The regulations will require that at least 20 per cent of new vehicles sold in Canada will be zero emission by 2026, at least 60 per cent by 2030, and 100 per cent by 2035. The government hopes these targets will help increase supply so that more Canadians who want a ZEV can buy one.
The regulations are based on evidence from Quebec, British Columbia, and other jurisdictions with ZEV sales targets in place that suggest when combined with supportive investments, a zero-emission vehicle sales target accelerates the transition to clean cars and trucks. It also provides certainty to the private sector to support investments in charging infrastructure.
“Zero-emission vehicles are where the rubber hits the road for cost-conscious Canadians who want to help the environment while getting off the roller-coaster of high gasoline prices,” said Guilbeault. “With Canada’s deep experience in auto-parts manufacturing, vehicle assembly, and with all of the critical minerals needed for batteries found here, Canada is well positioned to be a leader in making the vehicles that the world is looking to drive. With ZEVs, we can cut pollution, create jobs, and make life more affordable for families across the country.”
However, the auto dealers and manufacturers associations are not overwhelmed by joy about these new mandates. “Affordability is a major concern for most Canadians,” said David Adams, President and CEO of the Global Automakers of Canada. “If the Government goes ahead with the regulations as they are currently drafted, the cost burden will fall most heavily on Canadian families that are already struggling with high interest rates and high inflation, potentially pushing new vehicle ownership beyond the reach of hundreds of thousands of Canadians. These Canadians will have to keep their older, more polluting cars on the road longer, ironically undermining the government’s climate change and pollution reduction goals.”
The Canadian Automobile Dealers Association released a statement immediately after the government’s announcement, stating that although dealers are all-in on the transition to zero emission vehicles, this mandate does not address critical concerns of the association. “The concern for dealers and consumers is that this insulated mandate, which does not address the necessary structural preconditions in terms of accessible charging infrastructure and competitive purchasing incentives, will limit consumer choice and lead to increased vehicle costs,” said Tim Reuss, CADA President & CEO.
“No other industry has invested as much in the transformation to zero emissions than the auto industry. Dealers across Canada are investing hundreds of millions in charging infrastructure and technology on top of the billions spent by Canadian and worldwide vehicle manufacturers,” added Reuss. “It is high time for the Federal Government to listen and work with industry and consumer groups to design and implement a plan that takes into account the vastly different economic and geographical realities across Canada”.
CADA has advocated that the most important action for the ZEV transition is investment in accessible charging infrastructure and competitive purchasing incentives. “Without consumer confidence that they can afford and charge their vehicles, progress will be very slow on the transition to zero emissions,” said Reuss.
