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ARTICLE · 29 MARCH 2023

The Current State Of Canada's ZEV Market

Bennett Jones LLP
Bennett Jones LLP
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Bennett Jones LLP

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Federal and provincial policies are creating a new landscape for zero-emissions vehicles (ZEV) manufacturers, importers and suppliers, charging companies and investors to Canada.

CanadaTransport

Federal and provincial policies are creating a new landscape for zero-emissions vehicles (ZEV) manufacturers, importers and suppliers, charging companies and investors to Canada. Opportunities and considerations include:

  • a proposed national sales mandate for ZEVs;
  • purchase incentives that vary by province;
  • new frameworks for ZEV charging infrastructure; and
  • a new compliance credit system.

ZEV Sales Targets

The proposed Regulations Amending the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations (the Regulations) set annual sales targets for new light-duty ZEVs offered for sale in Canada—at least 20% by 2026, at least 60% by 2030 and 100% by 2035. Canada's 2035 sales target aligns with similar ones in British Columbia and Quebec, as well as California and 15 other U.S. states. In 2022, the ZEV market share in Canada increased to 8.9%, up from 5.6% in 2021, according to S&P Global.

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