The proposed regulations would require manufacturers and importers to meet Zero Emissions Vehicles sales targets annually. These would begin with a requirement that at least 20% of new light-duty vehicles offered for sale be ZEVs for the 2026 model year, increasing annually to at least 60% by 2030 and 100% by 2035.
Light-duty vehicles (passenger cars, SUVs, and light trucks) account for roughly half of all transportation emissions in Canada. The proposed regulations contribute to the reduction of emissions from transportation. They are an essential component of the 2030 Emissions Reduction Plan, which puts Canada on track to achieve at least a 40% reduction in emissions by 2030.
After 2026, new light-duty gasoline or diesel vehicles will still be available. However, companies selling new cars will be required to offer a growing percentage of their fleet as ZEVs beginning in 2026, increasing to 100% by 2035.
ZEVs are typically classified as battery-electric vehicles that run solely on electricity, fuel-cell electric vehicles that run on hydrogen, and plug-in hybrid electric vehicles that can run solely on electricity for a set distance before transitioning to hybrid vehicles that run on both liquid fuels and electricity.
The proposed regulations would apply to all companies that manufacture or import vehicles into Canada to sell them at the first retail purchase. They will apply to new passenger cars, SUVs, pickup truck manufacturers and importers but not emergency and fire-fighting vehicles.
Due to regulated sales targets, more ZEVs will be available in the used-car market. As more low-cost and used ZEVs enter the market, more households will benefit from lower fuel and maintenance costs.
The government announced the proposed regulations on December 21, 2022, and a formal 75-day consultation period will begin upon publication in the Canada Gazette, Part I, on December 31, 2022.
