Canada’s Environment Department has proposed expanding the Zero-Emission Vehicles Program to include used vehicles, according to a federal report. The government is considering this change to further incentivize the purchase of electric vehicles (EVs) as part of Canada’s 2030 Emissions Reduction Plan.
The latest progress report on the plan to reduce greenhouse gas emissions outlined the government’s intention to explore the potential for expanding the existing Incentives for Zero Emission Vehicles Program to include used vehicles. This plan builds on the recent expansion of the program to provide more incentives for car-sharing fleets.
While the report did not explicitly mention used EVs, the mandate letter from 2021 to then-Minister of Transport Omar Alghabra indicated that one of his priorities was accelerating the transition to zero-emission vehicles.
Currently, the federal government offers incentives of $5,000 for EVs with an electric range of at least 50 kilometers and $2,500 for those with shorter electric ranges. Several provinces also provide their own incentives for purchasing EVs, with the amounts varying by province.
In terms of used EVs, some provinces also offer rebates, such as Prince Edward Island’s $5,000 rebate, Nova Scotia’s rebates ranging from $1,000 to $2,000, and New Brunswick’s $1,000 in rebates.
Additionally, on December 19, Environment Minister Steven Guilbeault announced a plan to ensure that all vehicles sold in Canada are zero-emission EVs by 2035, with specific targets for vehicle manufacturers to meet along the way. Automakers will be issued credits for the zero-emission vehicles they sell, with the ability to sell or bank these credits to meet future targets.
During the announcement, Minister Guilbeault did not indicate whether federal rebate amounts for EVs would change, stating that the current plan is to maintain a $5,000 purchase incentive but leaving the possibility for adjustments in the future.