To boost sales of zero-emission vehicles (ZEVs) and ban the sale of gasoline vehicles by 2035, Ottawa is introducing new incentives to persuade the private sector to produce and sell more ZEVs and also encouraging the installation of charging stations.
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At the heart of the new plan unveiled Tuesday is an “Early Action Credit” program designed to incentivize companies to accelerate sales of these vehicles starting in 2024 and 2025.
Those who exceed their target will receive excess credits, while those who fall behind will “create a deficit,” an Environment and Climate Change Canada (ECCC) official said.
All credits can only be used until 2034, as by 2035 all new light vehicles for sale in Canada must be electric.
In addition, companies can receive a $20,000 credit for their fast charging projects, provided the terminals are compatible with all brands and models and have a charging capacity of 150 kilowatts.
Ottawa’s goals remain unchanged from those announced in the past. The government wants zero-emission vehicles (ZEVs) to account for 20% of sales by 2026, 60% by 2030, before reaching 100% by 2035.
The rise remains steep: Last quarter, sales of ZEVs in Canada accounted for 12.5% of revenue, although that’s up from 10% in the previous quarter.
The federal government estimates – according to various studies – that the price of electric vehicles should reach the level of gasoline vehicles by the end of the 2020s. Meanwhile, the fleet of used ZEVs also needs to expand to create a more accessible market.
Due to incentives already in place, Quebec is the second highest revenue province after British Columbia (26.4%) at 22.8%.