Canada to Announce 2035 All-EV Sales Mandate, Reports Say

(Bloomberg) -- The Canadian government is poised to pass rules requiring all new vehicles sold in the country to be zero-emissions by 2035, according to news reports.

The federal government will announce the regulation, called the Electric Vehicle Availability Standard, in the coming days, with the aim of phasing out the sale of new combustion vehicles, the Canadian Broadcasting Corporation and the Toronto Star reported, both citing an unnamed senior government official. 

The new rules will require zero-emissions vehicles — which include battery electric, hydrogen and plug-in electric vehicles — to make up 20% of all new car sales in 2026, 60% in 2030 and 100% in 2035, the reports said.

The government also wants to ensure that EVs are available to consumers in Canada amid concerns about a lack of supply as electric cars, trucks and SUVs are shipped to other markets, the reports said.     

Automakers will be able to earn credits for bringing more electric vehicles to market ahead of the target dates and for investing in EV-charging infrastructure.

A spokesperson for Environment and Climate Change Canada didn’t immediately respond to a request for comment Sunday. 

The UK introduced an EV sales mandate with similar timelines — including a target of 100% of new sales by 2035 — in September. More than a dozen US states, including New York and California, have EV sales mandates.

US President Joe Biden’s administration in April proposed new tailpipe emissions limits that would effectively compel automakers to ensure two out of every three cars and light trucks sold in 2032 are electric models. Republican frontrunner Donald Trump has made the push for EVs a frequent point of attack against Biden, saying the policies will mean higher costs for car buyers and lead to US autoworker job losses.   

©2023 Bloomberg L.P.