Funding for the Incentives for Zero-Emission Vehicles Program
Requesting $54.5 million for the 2020-21 Supplementary Estimates B
The Incentive for Zero-Emission Vehicles program is seeking access to $287.3 million (including PSPC, SSC and EBP) in planned spending authorities over two years.
Key Messages:
- The $54.5M included in these Estimates for 2020-21, along with the remaining funds, will support the Incentive for Zero-Emission Vehicles program that provides point-of-sale rebates of up to $5,000 for the purchase or lease of eligible new zero-emission vehicles, thereby making them more affordable for Canadians.
- The Incentive for Zero-Emission Vehicles program contributes to a clean transportation system by increasing the adoption of zero-emission vehicles in Canada, through purchase incentives, as a means to reduce air pollution and/or greenhouse gas (GHG) emissions from transportation.
- The Incentive for Zero-Emission Vehicles program provides point-of-sale rebates of up to $5,000 for the purchase or lease of eligible new zero-emission vehicles, thereby making them more affordable for Canadians.
- Since the launch of the program on May 1, 2019, over 60,000 Canadians and Canadian businesses have benefitted from the point-of-sale incentive (as of September 31, 2020).
If pressed:
- The Incentive for Zero-Emission Vehicles program is necessary to help put Canada on a path to meeting the Government’s zero-emission vehicle sales targets of 10% of new light-duty vehicles by 2025, 30% by 2030, and 100% by 2040.
Background
- The federal Incentive for Zero-Emission Vehicles Program was launched in May 2019 and provides a point-of-sale rebate of up to $5,000 for the purchase or lease of eligible zero-emission vehicles (ZEVs) (including plug-in hybrids).
- Zero-emission vehicles (ZEVs), which include battery-electric, fuel cell electric, and plug-in hybrid vehicles, offer the potential to significantly reduce transportation emissions, particularly over the longer-term.
- The iZEV program helped to push ZEV market share in Canada to 3% in 2019, up from 2% in 2018. Although new light-duty vehicle sales are lower in 2020 compared with 2019, as a result of the COVID-19 pandemic, ZEV market share thus far this year has remained stable at 3 %.
- Given the pace of sales to date, the current funding for the iZEV program was expected to be fully expended by the end of 2020.