Canada to Mandate 20 Percent ZEV Sales by 2026

The government of Canada today proposed regulated sales targets for zero-emission vehicles (ZEV), which include fully electric and plug-in hybrid models, starting with a minimum of 20 percent by the 2026 model year.

These targets would increase annually to at least 60 percent by 2030 and 100 percent for 2035.

Automakers and vehicle importers who don't meet the sales targets could face penalties under the Canadian Environmental Protection Act.

The plan is to track ZEV sales by issuing credits, following the example of several jurisdictions around the world including Quebec and British Columbia. Fully electric cars and trucks would be worth more credits than plug-in hybrids.

The new regulations were informed by extensive engagements with stakeholders over the last year. The government will officially launch a formal 75-day consultation period upon their publication in the Canada Gazette, Part I on December 31, 2022.

In the first half of 2022, only 7.2 percent of new light-duty vehicles sold across the country were ZEVs.

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