Canada's Cabinet Mandate Letters Highlight Focus on Zero-Emission Vehicles

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The push for zero-emission vehicles (ZEVs) and increased electrification of automobiles and transport options is still strong in Canada. The federal government remains a strong advocate for ZEVs, and Prime Minister Justin Trudeau's recently released mandate letters to his Cabinet members feature several ZEV objectives. Mandate letters outline the long-term policy goals for each Cabinet member, and the Prime Minister is pushing for: 

  • a commitment to reach ZEV targets of 10% of light-duty vehicle sales per year by 2025, 30% by 2030 and 100% by 2040;
  • an expansion of the federal ZEV incentive through a 10% rebate on a used zero-emission vehicle up to a maximum value of $2,000;
  • exploring measures to convert government fleets to ZEVs;
  • new federal investments in public transit to support zero-emission buses and rail systems starting in 2023;
  • new funding to help school boards and municipalities purchase 5,000 zero-emission school and transit buses over the next five years;
  • cuts in tax rates by 50% for companies that develop and manufacture zero-emissions technology including ZEVs, batteries for ZEVs, grid storage and electrical vehicle charging systems; and
  • a broader push for a net-zero emissions economy by 2050.

While the success of the above mandates will remain to be seen, it is clear that clean technology will be a growing part of Canada's automobile industry going forward.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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