The push for zero-emission vehicles (ZEVs) and increased electrification of automobiles and transport options is still strong in Canada. The federal government remains a strong advocate for ZEVs, and Prime Minister Justin Trudeau's recently released mandate letters to his Cabinet members feature several ZEV objectives. Mandate letters outline the long-term policy goals for each Cabinet member, and the Prime Minister is pushing for:

  • a commitment to reach ZEV targets of 10% of light-duty vehicle sales per year by 2025, 30% by 2030 and 100% by 2040;
  • an expansion of the federal ZEV incentive through a 10% rebate on a used zero-emission vehicle up to a maximum value of $2,000;
  • exploring measures to convert government fleets to ZEVs;
  • new federal investments in public transit to support zero-emission buses and rail systems starting in 2023;
  • new funding to help school boards and municipalities purchase 5,000 zero-emission school and transit buses over the next five years;
  • cuts in tax rates by 50% for companies that develop and manufacture zero-emissions technology including ZEVs, batteries for ZEVs, grid storage and electrical vehicle charging systems; and
  • a broader push for a net-zero emissions economy by 2050.

While the success of the above mandates will remain to be seen, it is clear that clean technology will be a growing part of Canada's automobile industry going forward.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.