Location: National
Summary of Issue/Background
- Light-duty vehicle (LDV) emissions account for approximately 50% of Canada's transportation-related greenhouse gas (GHG) emissions, and 12% of the country's total emissions. Decarbonizing these vehicles is critical to reducing overall emissions in Canada.
- Zero-emission vehicles (ZEVs) are vehicles that can operate without producing tailpipe emissions, such as battery-electric, plug-in hybrid electric, and hydrogen fuel cell vehicles.
- On May 1, 2019, the Government of Canada launched the three-year Incentives for Zero-Emission Vehicles (iZEV) program aimed at supporting the adoption of zero-emission vehicles in Canada and addressing greenhouse gas emissions from the transportation sector.
- The success of the program in incenting the purchase of ZEVs led to the $300 million in funding from 2019 being deployed faster than originally projected. A top-up of $287 million was added last fall to fulfill the three-year commitment, bringing the total funding of the program to over $587 million.
- As of August 2021, over 109,000 Canadians and businesses have participated in the program, helping Canada accelerate the shift to ZEVs, reduce its greenhouse gas emission and advance its broader climate change objectives.
- On August 5, 2021, the United States announced stronger greenhouse gas regulations for light-duty vehicle model years 2023-2026, as well as a 50 percent sales target of zero-emission vehicles by 2030.
- Transport Canada is continually evaluating the iZEV program, which includes assessing the interaction between its current vehicle price caps and new zero-emission vehicle models entering the market. Given the popularity of SUVs and pickup trucks amongst Canadian consumers, increasing uptake of zero-emission vehicle models in these segments will be essential to meeting the Government of ambitious Canada’s zero-emission vehicle sales target.
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Messages
- The Government of Canada is committed to meeting a mandatory target for all new light-duty cars and passenger trucks sales to be zero-emission by 2035, accelerating Canada’s previous aspirational goal of 100 percent sales by 2040. The Government also announced that it would pursue a combination of regulations and investments to help Canadians and industry make the transition to zero-emission vehicles.
- The Incentives for Zero-Emission Vehicles Program (iZEV) program contributes to a clean transportation system. Increasing the adoption of zero-emission vehicles in Canada through purchase incentives (up to $5,000 per vehicle) will help to reduce air pollution and greenhouse gas emissions from the transportation sector.
- To support ZEV adoption, the Government of Canada is considering expanding the iZEV program to include a wider range of vehicle types, including used vehicles.