- Canada has set ambitious zero-emission vehicle sales targets of 100% new light-duty vehicles sales by 2035, and 100% of new medium- and heavy-duty vehicles sales by 2040, where feasible.
- To achieve these goals, Budget 2022, included an additional $1.7 billion to provide purchase incentives for new light-duty zero-emission vehicles and over half a billion for purchase incentives for new medium- and heavy-duty vehicles.
- As of the end of March 2023, the Government of Canada has incented the purchase of over 200,000 new light-duty vehicles, and over 380 new medium- and heavy-duty vehicles.
- These investments are expected to support about 500,000 new light-duty vehicles and 20,000 new medium- and heavy-duty vehicles over the lifetime of these purchase incentive programs.
SUPPLEMENTARY MESSAGES
- Transportation is Canada's second largest source of greenhouse gas emissions, with the vast majority coming from on-road vehicles
- The Government of Canada is pursuing a combination of investments and regulations to help Canadians and industry make the transition to zero-emission vehicles
- Over the lifetime of Transport Canada’s purchase incentive programs will invest over $2.8 billion dollars that will result in roughly 500,000 new light-duty zero-emission vehicles and 20,000 new medium- and heavy-duty zero-emission vehicles are expected to be incented.
- New light-duty zero-emission vehicle sales reached 8.9% of total new light-duty vehicle sales in 2022, according to S&P Global
UPDATE
Main Estimates 2023-24 provides $635,016,170 in grant funding for fiscal year 2023-24 to support both the Incentives for Zero-Emission Vehicles (iZEV) Program and the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program.
SUPPORTING FACTS AND FIGURES
- New light-duty zero-emission vehicle market share was 8.9% in 2022, up from 5.6% in 2021, 3.8% in 2020, and 3.1% in 2019, according to S&P Global Mobility.
- Canada’s 2030 Emissions Reduction Plan established a new interim light-duty zero-emission vehicle sales target of at least 20% by 2026 and at least 60% by 2030, and a new interim medium- and heavy-duty sales target of 35% by 2030
- In December 2022, the Government of Canada released draft ZEV sales regulations for new light-duty vehicles aimed at achieving Canada’s new light-duty zero-emission vehicle sales targets
- In December 2022, the Government of Canada also released “Canada’s Action Plan for Clean On-Road Transportation”, which outlines a comprehensive strategy to help Canadians and Canadian businesses make the switch to zero-emission vehicles and reduce emissions from on-road transportation.
- Budget 2022 included over $3.1 billion in new investments to accelerating zero-emission vehicle adoption, which included new funding for purchase incentives and charging and hydrogen refuelling stations
BACKGROUND
Transport Canada’s iZEV Program was launched in May 2019. The iZEV Program offers incentives of up to $5,000 for eligible vehicles that fall within specified vehicle price caps. The price caps for base models of cars are $55,000, and up to $65,000 for higher-priced trims. The price caps for base models of station wagons, sport-utility vehicles, vans, minivans, and pickup trucks are $60,000, and up to $70,000 for higher-priced trims. Individuals are eligible for 1 incentive per calendar year, while businesses are eligible for 10 incentives per calendar year.
Transport Canada’s iMHZEV Program was launched in July 2022. The iMHZEV program offers incentives for up to $200,000 for eligible vehicles. Businesses are eligible for 10 incentives per calendar year. Both iZEV and iMHZEV incentives are able to be combined with provincial or territorial incentives.
ATIP PROTECTED BACKGROUND
[ Redacted ]