In June 2021, Canada's Renewed and Integrated ZEV Strategy updated Canada's zero-emission vehicle (ZEV) sales target. Our new target is that 100% of new light-duty vehicle (vehicles with a gross vehicle weight rating less than 8,500 lb) sales must be zero-emission by 2035, instead of 2040.
In March 2022, we committed to developing ZEV regulations that require:
- at least 20% of all new light-duty vehicle sales to be zero-emission by 2026
- at least 60% by 2030, and
- 100% by 2035
In addition to the LDV ZEV regulations, Canada also committed to developing medium- and heavy-duty (MHDV) ZEV regulations that will require 100% of MHDV sales to be ZEVs by 2040 for a subset of vehicle types based on feasibility, with interim 2030 regulated sales requirements that would also vary for different vehicle categories based on feasibility, and to explore interim targets for the mid-2020s.
We're working to meet these requirements by addressing the issues that keep some people and organizations from switching to ZEVs, including affordability, availability, and accessibility to infrastructure. We will address these barriers by creating incentive and awareness programs for ZEVs, and building a network of charging infrastructure across Canada.
Summary
As required by the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, we evaluated the environmental effects of the Renewed and Integrated Zero-Emission Vehicle (ZEV) Strategy and the Integrated Strategy for Decarbonizing On-Road Transportation. The assessments took into account the environmental goals and targets of the 2019-2022 Federal Sustainable Development Strategy.
We found that these strategies will have an important positive effect on the environment by helping to reduce greenhouses gas emissions and making progress toward the Federal Sustainable Development Strategy's goals and targets.
Environmental effects
Fewer emissions
The transportation sector accounts for almost a quarter of Canada's greenhouse gas emissions, with over half coming from on-road vehicles. These strategies were created to increase the number of zero-emission vehicles (ZEVs) on the road and help Canadians move away from vehicles with internal combustion engines. The Renewed ZEV and On-Road Decarbonization Strategies can help us reduce greenhouse gas emissions from light-, medium-, and heavy-duty vehicles and support our switch to a low-carbon transportation system.
The benefits of R&D
Existing programs like the Strategic Innovation Fund and the Energy Innovation Program can help to fund zero-emission vehicle (ZEV) projects like:
- producing ZEVs
- developing, recycling or reusing batteries or fuel cell systems
- managing a ZEVs power use
- lightweighting (reducing the overall weight of vehicle battery packs)
- improving a ZEVs density or powertrain
Together, these technologies could have a positive impact on both the environment and the economy by creating technology that can address key barriers and increase economic opportunities in Canada.
Charging and refueling infrastructure
Both strategies will use and build on existing programs like the Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative and the Zero-Emission Vehicle Infrastructure Program. Federal contributions to support a greater number of charging and refueling stations will help us meet our regulatory outcomes (the regulations' goals), notably reducing greenhouse gas emissions from Canadian road transportation.
Retrofitting, replacing, and repowering medium and heavy-duty vehicles
Reducing emissions from freight vehicles is key to reaching our emission goals. The Green Freight Program will focus on helping fleets reduce their fuel use and greenhouse gas emissions through:
- fleet energy assessments
- fleet retrofits
- engine repowers
- using best practices, and
- buying low-carbon vehicles
Teaching Canadians about ZEVs
The strategies include measures that will increase the public's awareness and understanding of zero-emission vehicles (ZEVs), including their environmental benefits. This will have a positive environmental impact on Canada, as it will teach Canadians and Canadian fleet owners about their vehicle purchases. Canadians and Canadian organizations will also learn about the health benefits of owning a ZEV, including less air and noise pollution.
Ties to the Federal Sustainable Development Strategy
Canada's Renewed and Integrated ZEV Strategy and On-Road Decarbonization Strategy contribute to the 2019-2022 Federal Sustainable Development Strategy's goals by:
- taking effective action on climate change by reducing greenhouse gas emissions and moving towards a low-carbon economy
- contributing to modern and resilient infrastructure by supporting green transportation infrastructure and improving its availability, particularly among disadvantaged communities, including investing in zero-emission vehicle charging and refueling stations
- encouraging clean growth by investing in clean energy R&D, and creating more economic opportunities in Canada's automotive sector as it pivots to producing zero-emission vehicles, and
- supporting safe and healthy communities by working with partners to reduce transportation-related emissions and improve air quality
Enhancement and mitigation measures
We expect that the positive environmental effects of these initiatives will be enhanced by the work of key partners, including provinces and territories, industry, and other stakeholders. This will support the national zero-emission vehicle sales targets that will be set through these proposals.
As ZEVs become more common, there may be questions on how to manage battery technologies at the end of their lives to make sure they're recycled or disposed in a way that limits any negative environmental impacts. These negative effects would be limited through initiatives that the government is developing. We're actively working on strategies for:
- managing the end-of-life of ZEV batteries and
- developing and commercializing new technologies that improve battery safety, performance, cost, re-usage/recyclability, and sustainability
As more ZEVs are produced, there will be opportunities, but also more pressure on Canada's mining industry to meet the growing demand for the minerals needed for batteries. To help support this demand, the 2021 and 2022 federal budgets included several measures to support the growth of a net-zero economy and developing the various business activities and processes involved in accessing and using critical minerals.
Follow-up and monitoring
We will report on the roll-out and impact of the Renewed and Integrated ZEV Strategy through the Horizontal Results Framework for the Strengthened Climate Plan. A progress review in 2025-26 will also give us a chance to determine whether the strategies are on track to meet our goals.