Environment Minister Steven Guilbeault speaks at a press meeting on Tuesday, Dec 19, 2023, where he outlined his new mandate to make a shift to electric vehicles in Canada. The Canadian Press/ Frank Gunn
Canada is set to bid farewell to gas-powered vehicles as Environment Minister Steven Guilbeault unveils new regulations mandating the shift to battery-operated cars, trucks, and SUVs. The regulations, known as the Electric Vehicle Availability Standard, will give automakers a 12-year window to phase out combustion engine vehicles, with a requirement to incrementally increase the proportion of electric models offered for sale each year.
This move aligns with a commitment made by the Liberals more than two years ago to end the sale of combustion-engine passenger vehicles by 2035. While environmental groups have praised the decision, automakers remain cautious, emphasizing the need for additional measures to incentivize electric vehicle (EV) adoption, such as expanding charging infrastructure and enhancing government rebates for EV purchases.
Guilbeault announced at George Brown College in Toronto, highlighting the significance of electric cars as the future. The regulations stipulate that by 2026, automakers must ensure that one in five vehicles sold in Canada is either a battery electric or a longer-range plug-in hybrid model, increasing to 23 percent in 2027. Subsequently, the share of EVs will escalate more rapidly, reaching 34 percent in 2028, 43 percent in 2029, and culminating in 100 percent by 2035.
Notably, gas-powered vehicles sold before 2035 will continue to operate, but no new ones will be introduced. Current EV sales in Canada indicate that approximately one in 10 new registered vehicles in 2023 are electric, prompting a need for a significant uptick in EV sales over the next three years.
Two provinces, Quebec and British Columbia, have already surpassed the 20 percent threshold, attributing their success to provincial EV sales mandates and longstanding consumer rebates. However, other provinces lag behind, with Ontario drawing particular attention for its absence of proactive measures.
Advocates argue that a national mandate will level the playing field for EVs across all provinces. They also emphasize concerns about long waiting lists, discouraging potential consumers. On the other hand, automakers, represented by the Canadian Vehicle Manufacturers' Association, express reservations about the necessity of a mandate, asserting that the industry is already heavily investing in EVs.
This regulation puts Canada at odds with the United States, where federal policies focus on emissions reduction through increased EV sales. Automakers in Canada are also apprehensive about charging capacity, with a need for substantial improvements to accommodate the anticipated surge in EV adoption.
To address this, Guilbeault outlines government plans to revise the national building code to ensure residential buildings constructed after 2025 have the electric capacity for charging stations. The sales mandate will be regulated under the Canadian Environmental Protection Act, utilizing a credit system. Manufacturers exceeding annual targets can bank credits for future use or sell them to companies falling short. Additionally, investments in public fast-charging stations can contribute towards meeting credit requirements.
The government aims to kickstart the transition by allowing automakers to earn credits toward their 2026 and 2027 targets over the next two years. As Canada takes this bold step towards a greener automotive future, challenges and debates among stakeholders are expected to shape the path to widespread EV adoption.
