The Canadian government has just issued a new set of regulations that are intended to reduce emissions from the transportation sector by targeting car sales of light-duty vehicles (passenger vehicles, SUVs, crossovers and light trucks).
These proposed regulations would set requirements for automakers to meet annual ZEV (zero-emission vehicle) targets. For calendar year 2026, this would mean at least 20 percent of new light-duty vehicles sold would be ZEVs, and the threshold would increase gradually until 100 percent of new car sales by calendar year 2035.
In order to support the ambitious effort to transition to 100 percent ZEVs, the Canadian government has set a series of priorities to help focus its efforts:
- ZEV availability
- Prospective customers who want to own a ZEV may face limited availability. To combat this, the ZEV sales target will require automakers to supply an increasing share of those vehicles.
- ZEV affordability
- With prices projected to fall in the coming years, vehicle incentives help to offset the current cost differences between ZEVs and ICE vehicles.
- Charging station availability
- The Canadian Government has committed to help build 85,000 publicly funded refueling stations across Canada by 2027.
- Raise public awareness
- Education programs intended to inform unaware Canadians will help prospective customers to discover the benefits of adopting a ZEV.
- Economical benefits
- Through the Critical Minerals Strategy, as well as $3.8 billion worth of investments from companies around the world, the foundation of a clean future and energy is being built.
It’s worth noting that the Canadian government indicates that ZEVs include fully electric vehicles (BEV), hydrogen-powered (FCEV) and plug-in hybrid (PHEV) vehicles. In the case of General Motors, there are no FCEVs or PHEVs currently in the works. However, through Ultium battery and Ultium Drive technologies, GM has a slew of BEVs in development that would meet these new regulations in several popular vehicle segments, such as the Chevy Equinox EV, the Chevy Blazer EV, the Chevy Silverado EV and the GMC Sierra EV, in addition to the Cadillac Lyriq that’s already available.