Federal – Proposed regulations eliminate the manufacturing of fuelled vehicles after 2035

The federal government announced changes to the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations that would require all vehicles sold after 2035 to be 100% zero-emission vehicles (ZEV).

The proposed amendments would establish targeted sales percentages from 2026-2035, starting with 20% ZEV sales in 2026 and increasing annually until 2035 where 100 percent of all vehicles offered for sale in Canada would be required to be ZEV. Not only does the new regulatory change dictate the types of vehicles for sale, but it also establishes that a ZEV is either a battery electric vehicle, a fuel cell vehicle, or a plug-in hybrid electric vehicle.

This establishment of the types of ZEVs eliminates the manufacturing of any other type of fuelled vehicle after 2035 and roadblocks the development of other blended or renewable energy-sourced vehicles. 

The federal government’s announcement comes with a significant cost to Canadians. The report stated, “From 2026 to 2050, the proposed ZEV amendments are estimated to have incremental ZEV and home charger costs of $24.5 billion…”.

Feedback to the proposed amendment is open until March 16, 2023. The CPA is planning to provide comments and is looking for your feedback about how the proposed regulations will affect your business. Read more on the amendments in Canada Gazette, Part I, Volume 156, Number 53. Respond to the CPA with your comments by February 15, 2023, to SVP Regulatory Affairs & Safety, Robert Loenhart.