Canadian Legislative News

In late May, Environment and Climate Change Minister Catherine McKenna signed the Drive Zero Pledge, an international effort aimed at increasing the number of zero- and low-emission vehicles in the medium- and heavy-duty transportation sector. The effort aligns with the call by global leaders to reduce the impact of emissions on the environment. Canada is the first country to subscribe to the initiative, through which it pledged to adopt low emission and zero emission heavy-duty commercial vehicles in the public sector, especially in transportation.

The goal of the campaign is to make zero-emission technology commercially viable in smaller markets by 2025 within the commercial vehicle market segments, building to primarily zero-emission technology in commercial vehicle sales globally by 2040. The range of vehicles involved will include box trucks, school buses, and 18-wheelers.

Drive to Zero partners include cities, manufacturers, fleets, and fuel suppliers, along with governments. In the federal budget unveiled in March, a set of initiatives was cited in order to encourage adoption of ZEVs by Canadian consumers, businesses, and fleets. The initiatives also included $5,000 rebates towards the purchase of an eligible electric vehicle and up to $55,000 in capital cost deduction in the first year of investment for businesses. Fleets could take advantage of the retail rebate or the investment tax deduction, but not both.

It remains unclear what this new pledge entails in terms of policy and regulations and incentives for businesses and fleets. NAFA's Canadian Counsel has reached out to government officials for details and will update the membership once they are finalized.