Federal government announces the finalization of its ‘Electric Vehicle Availability Standard’

TORONTO — Steven Guilbeault, Minister of Environment and Climate Change, announced Canada has finalized its new Electric Vehicle Availability Standard to increase the supply of clean, zero-emission vehicles available to Canadians across the country. The Standard complements additional actions underway by the federal government to develop a robust electric vehicle supply chain and infrastructure that creates good, middle-class jobs and ensures a cleaner, safer environment.

The Standard will try and ensure that Canada can achieve a national target of 100 percent zero-emission vehicle sales by 2035. Interim targets of at least 20 percent of all sales by 2026, and at least 60 percent by 2030, will channel supply to Canadian markets instead of going abroad, reducing customer wait times and making sure Canadians have access to the latest affordable and technologically advanced vehicles that are coming to the market in the next few years. The Electric Vehicle Availability Standard will try to help Canada keep pace with the United States, the United Kingdom, the European Union, and several other major economies which are all taking action to lower emissions and put more electric vehicles on the roads.

The Canadian marketplace for passenger vehicles is already experiencing a rapid shift toward zero-emission vehicles. As pricing on select models has decreased and gas prices remain volatile, demand for electric vehicles has increased year over year. In the last quarter alone, one out of every eight new cars sold across Canada was a zero-emission vehicle. And, in British Columbia and Quebec, which already have similar standards in place, new electric vehicles now account for one in five sales in those provinces.

Switching to electric vehicles is the more affordable option over the long run. Recharging costs can be as little as $10 per 400 kilometres and, over a ten-year span, the average cumulative ownership cost of an electric vehicle hatchback is $48,943, whereas the gas-powered alternative is $82,515. According to experts, when purchase incentives from the federal government (up to $5,000) and provincial and territorial governments (up to $7,000 in Quebec, for example) are combined with the reduced costs of battery charging and maintenance, many models hit a cost parity with gas vehicles within four years, and some in under a year.

Advancements in battery technology have improved cold-weather performance and increased the range of many currently available models to over 400 kilometres, representing a substantial improvement from earlier models.

The Standard was informed by extensive engagement over the last two years and follows a phased-in approach that allows for a gradual and orderly switch to a 100 per cent zero-emission future. More than $34 billion in new investments have been made by automotive and battery manufacturers since 2020, and are part of the shift to electric vehicle production and establishing a battery supply chain in Canada—which will create and maintain hundreds of thousands of good-paying jobs for Canadians in a modern automotive supply chain.

“Many Canadians are increasingly eager to make the switch to cleaner transportation, since it’s a win-win-win in savings, their heath, and the environment. Putting in place an Electric Vehicle Availability Standard fulfills a major climate commitment from our climate plan. Getting more electric vehicles on the road is another example of how we are taking climate action while helping make life more affordable. And our investments to position Canada as a significant player in the global electric vehicle manufacturing and battery supply chain shows how we are taking advantage of the economic opportunities provided by the emerging low-carbon economy,” said Steven Guilbeault, Minister of Environment and Climate Change.