Question Period Note: Zero-Emission Vehicles

Zero-Emission Vehicles

• The transition to zero-emission vehicles (ZEVs) is a critical part of our approach to reducing GHG emissions.
• Gasoline and diesel cars and trucks are major sources of greenhouse gas emissions.
• The Government is supporting the transition to ZEVs through a range of measures including investments and regulations.
• But more needs to be done.
• We have committed to a target for 100% of new light-duty cars and passenger truck sales to be zero-emission by 2035, to a requirement to have at least 50% ZEV sales in Canada by 2030, and to a 100% ZEV target for heavy duty trucks by 2040 where feasible.
• In recognition of the integrated nature of the North American auto sector, we are working closely with our U.S. partners who have also set ZEV targets that will accelerate the transition to zero-emission vehicles, while ensuring that the Canadian auto industry remains competitive.

• The transportation sector accounts for one-quarter of Canada’s GHG emissions. Accelerating the transition from internal combustion engine (ICE) vehicles to zero-emission vehicles (ZEVs) is therefore critical to meeting Canada’s climate targets and achieving net-zero by 2050. Almost half of Canada’s transportation emissions comes from cars and light trucks. Medium and heavy-duty vehicles account for another 35%. The Government is supporting the transition to ZEVs through a range of measures, including investments and regulations for both light and heavy-duty vehicles.

• In October 2010, the Government of Canada published the Passenger Automobile and Light Truck GHG Emission Regulations under the Canadian Environmental Protection Act (CEPA). This was the Government’s first regulation targeting GHGs. The Regulations and subsequent amendments introduced progressively more stringent GHG emission targets for new light-duty vehicles in alignment with the U.S. national standards thereby establishing a common North American approach.

• In June 2021, the Government announced a new mandatory target for all new light-duty cars and passenger truck sales to be zero-emission by 2035, accelerating Canada’s previous goal of 2040. The Government also committed to assess whether alignment with U.S regulations would enable Canada to meet its more ambitious ZEV sales target, or whether additional mandatory measures are required. The federal government also committed to consult with stakeholders on Canada’s path forward to meet ZEV targets.

• To date, the Government has invested over a billion dollars to support the ZEV transition, including consumer rebates, charging infrastructure, procurement of zero-emission buses, support for ZEV manufacturing and batteries, and consumer awareness.

• Liberal platform commitments include additional investments for zero-emission vehicles, new targets of at least 50% ZEV sales by 2030 for light-duty vehicles, and 100% zero-emission medium, and heavy-duty vehicle sales by 2040, where feasible.

• Heavy-duty vehicles and engines in Canada are currently regulated by the Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations. These are also aligned with U.S. standards. These vehicles are composed of a diverse variety of vehicles that are used across a wide range of activities and includes local delivery vehicles, garbage trucks, buses, long-haul tractor-trailers, and others.

• Overall the on-road HDV population has increased by about 57% since 2005. There are approximately 2.5 million HDVs in Canada and this number is increasing by about 2% per year. HDVs also tend to have a long life. This is particularly pronounced for certain types of vehicles such as specialty vehicles. A life of 10-15 years results in a slow transition to newer more efficient vehicles. This underscores the importance of beginning the transition of HDV fleets to more efficient, low or zero-emission vehicles as soon as possible.

• California has the most ambitious HDV ZEV regulatory agenda in North America. The recently proposed Advanced Clean Truck (ACT) Regulations would require manufacturers to sell increasing percentages of zero-emission HDVs beginning in 2024. The Advanced Clean Fleets regulations would work in tandem with the ACT by requiring California fleets to purchase HDV ZEVs.

• The U.S. EPA’s Clean Trucks Plan to reduce GHG emissions and other harmful air pollutants from HDVs includes a series of rulemakings over the next three years. A first rule, to be finalized by the end of 2022, will apply to heavy-duty vehicles beginning in 2027. It will set new standards for criteria pollutants as well as updated GHG emissions standards for certain segments of the HDV sector. A second rule, to be finalized by July 2024, will set more stringent GHG emission standards for new HDVs of model year 2030 and beyond.

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