Ottawa has unveiled new regulations for all electric vehicles (EVs) in Canada.
At a press conference on Tuesday, Environment and Climate Change Minister Steven Guilbeault announced new standards that he says will provide more affordable EVs and more charging stations.
The federal government had previously announced that all vehicles sold in the country must emit zero emissions by 2035. Tuesday’s announcement clarified the schedule for the regulations, who is affected by them, and how the carmakers can comply.
The federal government is now mapping out the path for how it wants that to happen, now requiring 20 per cent of all cars, SUVs, crossovers and light-duty pickups sold by carmakers to emit zero emissions by 2026. By 2030 60 per cent of all cars sold must be zero emissions.
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Emergency vehicles like firetrucks and ambulances will be exempt.
Carmakers will earn, lose and bank credits, worth $20,000 for every vehicle that has an all-electric range of at least 80 kilometres, for meeting, exceeding and failing to meet sales targets.
Companies will be forced to pay one credit for every vehicle not sold under their target. They can also begin earning credits right away for selling EVs before 2026 and for building fast-charging stations.
Companies will only be able to offset 10 per cent of their total compliance.
The government will place a cap on each model year on the amount of company’s plug-in hybrids. Plug-ins with an electric range of at least 80 kilometres will be worth the same as battery-electric or fuel cell vehicles.
Plug-ins with electric ranges between 35 and 79 kilometres can earn full or partial credits, depending on the model year and seating capacity.
The government’s strategy also states regulations are designed to bring more EVs into the market, making them more affordable for lower-income Canadians.
A spokesperson said they expect EVs to reach similar prices as conventional vehicles by the late 2020s — and to become cheaper over the lifespan of a vehicle.
This story is developing and will be updated.
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