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Canada Mandates Annual Increase in Zero-Emissions Vehicle Sales, Aiming for 100% by 2035

ESGCanada Mandates Annual Increase in Zero-Emissions Vehicle Sales, Aiming for 100% by 2035

Canada’s government has announced the finalization of its new standard for electric vehicle (EV) availability, requiring annual increases in the proportion of new zero-emissions light-duty vehicles. The goal is to achieve 100% zero-emissions vehicle (ZEV) sales by 2035. This standard, initially introduced in draft form in 2022, is part of Canada’s broader strategy outlined in the 2030 Emissions Reduction Plan to cut greenhouse gas emissions by 40%-45% by 2030. The transportation sector, responsible for approximately 25% of Canada’s greenhouse gas footprint, is a key focus, with light-duty vehicles accounting for roughly half of the sector’s emissions. The targets set by the new standard begin in 2026, requiring at least 20% of new vehicle sales to be ZEVs, increasing to 60% by 2030 and reaching 100% by 2035. The definition of ZEVs includes battery-electric vehicles, hydrogen-powered fuel cell vehicles, and plug-in hybrid vehicles that meet specific electric-only range criteria. The regulation aims to boost ZEV availability for consumers and aligns with regulations in North America and internationally, such as California’s mandate for all new vehicle sales to be zero-emissions by 2035.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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