EV on the rise! Canada Moves to Phase Out Combustion Engine Vehicles by 2035

Canada is set to phase out the sale of combustion-engine passenger vehicles by 2035, fulfilling a promise made over two years ago. This significant move towards a greener future was announced by Environment Minister Guilbeault at George Brown College in Toronto, where an electric vehicle technician training program was recently launched.

The new Electric Vehicle Availability Standard aims to ensure a significant increase in the availability and affordability of electric vehicles (EVs) in Canada. According to the regulations, automakers must make sure that by 2026, 20% of the vehicles they market in Canada are either battery electric or plug-in hybrid models. This percentage is set to rise incrementally, reaching 100% by 2035.

The move has been applauded by various environmental groups. However, automakers are more cautious, pointing out the need for further measures such as the expansion of charging infrastructure and increased government rebates to boost EV adoption.

Despite skepticism from some quarters, there has been noticeable progress in EV sales in Canada. In 2023, approximately one in every ten new vehicles registered was electric. Notably, Quebec and British Columbia, which have their own EV sales mandates, have already surpassed the 20% threshold for EV sales.

Guilbeault emphasized the need for all provinces to support the EV transition, specifically calling out Ontario for lagging behind. He highlighted the federal government's investments in Ontario's EV supply chain and urged the provincial government to reinstate consumer rebates for EV purchases.

While EV advocates like Cara Clairman from Plug'n Drive support the national mandate for leveling the playing field across provinces, concerns remain about accessibility and long waiting lists for EVs in Canada. Brian Kingston of the Canadian Vehicle Manufacturers' Association counters that inventory shortages are no longer a significant issue, criticizing the government's regulation as unnecessary and challenging.

The U.S. approach to EV adoption, focused on emissions policy, differs from Canada's sales mandate strategy. However, the federal Liberals note that similar mandates exist in several U.S. states.

The charging infrastructure remains a key concern. Although Canada is on track to meet its goal of 33,500 charging ports by 2026, the distribution and operational tracking of these ports are uneven. The government is addressing residential charging capacity, a critical issue, by revising the national building code for new constructions post-2025.

To enforce the new sales mandate, a credit system under the Canadian Environmental Protection Act will be used. Automakers can earn credits by exceeding their annual EV sales targets or by investing in public fast-charging stations. These measures are part of a broader push by the government to encourage a quicker transition to electric vehicles.

Dubey, M. R. a. R. (2023, December 19). Canada lays out plan to phase out sales of gas-powered cars, trucks by 2035. BNN. https://www.bnnbloomberg.ca/live-ottawa-to-outline-plan-to-phase-in-ev-sales-mandate-1.2013492.amp.html