LOCATION: National
ISSUE/SOURCE: Incentives for Zero-Emission Vehicles Program
DATE: February 8, 2022
SUGGESTED RESPONSES
- The Government is committed to ensuring that by 2035, 100% of new light duty vehicles sold in Canada are to be zero-emission vehicles.
- The federal Incentives for Zero-Emission Vehicles Program (iZEV) provides a point-of-sale incentive of up to $5,000 for the purchase or lease of eligible zero-emission vehicles, as the higher purchase price of those vehicles is a barrier to their uptake.
- From the outset, the Program has showed strong results. Since its launch in May 2019, over 130,000 Canadians and Canadian businesses have benefited from the point-of-sale incentive.
- Zero-emission vehicles have the potential to significantly reduce Canada’s greenhouse emissions and support Canada’s transition to a low-carbon transportation system.
IF PRESSED
Will iZEV be funded beyond its current end date of March 31, 2022?
- The Government of Canada is currently exploring options to expand the iZEV Program to better align with consumer preferences.
BACKGROUND INFORMATION
- Light-duty vehicle emissions account for approximately 50% of Canada's transportation-related greenhouse gas emissions, and 12% of the country's total emissions. Zero-emission vehicles offer the potential to significantly reduce emissions in the transportation sector, particularly over the long-term.
- In June 2021, the Government announced that by 2035, 100% of new light duty vehicles sold in Canada are to be zero-emission vehicles, accelerating Canada’s previous goal of 100% sales by 2040.
- To date, the Government of Canada has invested more than $1 billion in measures to support increasing zero-emission vehicle adoption including the Incentives for Zero-Emission Vehicles Program, charging infrastructure and zero-emission vehicle awareness intiatives.
- As of November 23, 2021, the Tesla Model 3 “Standard Range Plus” vehicle, which was the most popular vehicle under the Program, is no longer eligible for the incentive due to a price increase. The “Standard Range” base model has also been discontinued as of this date.
- Transport Canada has put in place a process for any vehicles exiting the program due to price changes. Consumers who place orders for affected vehicles before the price change has occurred will receive an incentive upon the completion of the sale/lease transaction, subject to funding availability.