Canada has unveiled final regulations compelling all passenger vehicles sold by 2035 to be zero-emission vehicles (ZEVs) as part of a robust strategy to combat climate change. The regulations set a progressive trajectory, requiring ZEVs to constitute at least 20% of total car sales by 2026 and a significant 60% by 2030. These initiatives align with Canada’s commitment to reducing greenhouse gas emissions, with the transportation sector responsible for approximately 22% of the country’s emissions.
Government’s commitment to EVs
Environment Minister Steven Guilbeault emphasized the significance of these regulations, providing the automotive industry with the certainty needed to tackle challenges such as the limited availability of electric vehicles (EVs). He highlighted the importance of ensuring Canadians have access to a fair share of the global supply of these vehicles.
Similarity to California’s regulations
The regulations mirror those implemented by California, a trailblazer in green initiatives, which mandates that all new cars sold in 2035 must be plug-in hybrid electric vehicles (PHEVs), EVs, or hydrogen fuel cell-powered. Seventeen U.S. states have agreed to adopt similar regulations, underscoring the growing momentum towards sustainable transportation.
Challenges for the automotive industry
Despite the environmental benefits, the Canadian automotive industry expressed reservations about the ambitious targets, citing the higher costs associated with EVs. Concerns were raised about the incomplete charging infrastructure, particularly in rural areas, highlighting the need for more favorable market conditions, increased consumer incentives, widespread charging networks, and expanded grid capacity.
Market dynamics and global EV trends
While global EV sales currently constitute around 13% of total vehicle sales, projections from the International Energy Agency anticipate this figure rising to 40%-45% by the end of the decade. In Canada, Tesla led EV sales in 2022 with 36.7%, followed by Hyundai at 11.1%, according to Statista.
Addressing practicality concerns and incomplete targets
Acknowledging concerns about the impracticality of EVs in remote and northern regions due to cold conditions affecting battery efficiency, the regulations allow plug-in hybrid electric vehicles (PHEVs) with a minimum electric range of 80 km to remain eligible for sale in 2035 and beyond.
Canada’s climate change struggles
Canada, the world’s second-largest country with a population of 40 million, has faced challenges in meeting emissions reduction targets. Despite Prime Minister Justin Trudeau’s commitment to climate action, a recent assessment indicated that the current emissions reduction plan may fall short of the 2030 target.
Canada’s bold move to mandate zero-emission vehicles by 2035 reflects a determined effort to align with global sustainability goals, despite industry concerns and ongoing challenges in the country’s emission reduction journey.