Canada

Major Developments in 2022

A Healthy Environment and a Healthy Economy - Budget 2022

In the spring of 2022, the Government of Canada released its annual budget, which committed $1.25 billion USD over five years to extend the Incentives for Zero Emission Vehicles (iZEV) Program, as well as provide further funding to expand the Program to include medium and heavy-duty vehicles (MHDVs). The Budget further committed $368 million USD in large-scale urban and commercial zero-emission vehicle (ZEV) charging and refuelling infrastructure, with an additional $295 million USD for infrastructure in suburban and remote communities. This will contribute to the Government of Canada’s commitment to adding 50,000 new ZEV chargers and hydrogen fuelling stations across the country.

Canada's 2030 Emissions Reduction Plan

The Government of Canada released the 2030 Emissions Reduction Plan in June 2022, which introduced vehicle sales mandates for ZEVs. These regulations will require that at least 20 percent of new light-duty vehicles (LDVs) sold are ZEVs by 2026, 60 percent by 2030, and 100 percent by 2035. These mandates will put Canada on target to end the use of internal combustion engine in LDVs by 2050. The Emissions Reduction Plan also outlines sales mandates for MHDVs. The Government of Canada is mandating that 35 percent of MHDV sales be ZEVs by 2030, with 100 percent of sales for a subset of vehicle types (to be determined based on feasibility) by 2040.

Canada's Action Plan for Clean On-Road Transportation

In December 2022, Transport Canada released Canada’s Action Plan for Clean On-Road Transportation. The Plan outlines steps that the Government of Canada is taking to help the country meet its targets set out in the 2030 Emissions Reduction Plan. These steps include incentives for purchasing and producing ZEVs, regulations to ensure the safety of ZEVs and their supporting infrastructure, awareness to increase the uptake of ZEVs, and investments to bolster the battery supply chain.

Zero Emission Vehicle Infrastructure Program

To help meet the ZEV sales targets set by the Government of Canada, Natural Resources Canada launched the Zero Emission Vehicle Infrastructure Program (ZEVIP) in May 2022 – a $500 million USD fund that runs through 2027. The objective of ZEVIP is to increase access to charging and refuelling stations in Canada, which is currently one of the key barriers preventing ZEV uptake in the country. The program targets various infrastructure streams including public places, workplaces, on-street, multi-unit residential buildings, and commercial and public fleets. The program provides funding for the deployment of hydrogen refuelling stations, as well as fast chargers ranging from Level 2, 3.3kW to 200kW and above fast chargers.

Outlook

Canada continue to support the adoption of EVs with targeted policies and an integrated approach to tackling climate change.