An Environment Department report says the government is mulling expanding its Zero-Emission Vehicles Program incentives to include used vehicles.
A federal report on the status of Canada’s 2030 Emissions Reduction Plan suggests expanding incentives for electric vehicles (EVs) to include used EVs.
The latest
progress report on the plan to reduce greenhouse gas emissions says the government will “explore the potential to expand the Incentives for Zero Emission Vehicles Program to include used vehicles, building off the recent expansion of the program to enhance access to more incentives for car-sharing fleets.”
Then-Minister of Transport Omar Alghabra’s
mandate letter from 2021 said that one of his priorities was to advance measures to support Canada’s transition to a net-zero economy, “including accelerating the transition to zero-emission vehicles.” The letter does not specifically mention used EVs.
The federal government currently
offers up to $5,000 for new battery-electric, hydrogen fuel cell, and plug-in hybrid vehicles with an electric range of at least 50 kilometres. It offers an incentive of up to $2,500 for plug-in hybrid EVs with shorter electric ranges.
Additionally, many
provinces already offer incentives to purchase new EVs, with
Quebec giving rebates of up to $7,000,
Prince Edward Island and
New Brunswick offering up to $5,000,
B.C. offering up to $4,000,
Nova Scotia $3,000, and
Newfoundland and Labrador offering $2,500 in rebates. The provinces of Alberta, Saskatchewan, Manitoba, and Ontario do not offer rebates for EVs.
When it comes to used EVs, Prince Edward Island offers a $5,000 rebate, Nova Scotia offers rebates ranging from $1,000 to $2,000, and New Brunswick offers $1,000 to $2,500 in rebates.
On Dec. 19, Environment Minister Steven Guilbeault announced a
plan to ensure all new light-duty vehicles offered for sale in Canada
—passenger cars, SUVs, and light trucks
—are zero-emission EVs (ZEVs) by 2035. The plan will require Canadian vehicle manufacturers to ensure at least 20 percent of the new light-duty vehicles they sell in the 2026 model year are fully electric, plug-in hybrids, or fuel cell vehicles. That percentage will rise to 60 percent by 2030 and to 100 percent by 2035.
Automakers will be issued credits for the ZEVs they sell. Manufacturers that sell more ZEVs than needed to meet each year’s target will be able to bank those credits to meet targets in future years or sell them to companies that did not sell enough. Auto manufacturers can also cover up to 10 percent of the credits they need each year by investing in public fast-charging stations.
During his Dec. 19 announcement, Mr. Guilbeault didn’t say whether the federal rebate amounts for EVs would change.
“Right now, federally, the purchase incentive is $5,000 and that’s the plan we have moving forward,” he told reporters. “What will happen in the future? Will we change it? Will we adapt it? I don’t know.”
