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January 14, 2025
However, with Canada’s Incentives for Zero-Emission Vehicles (iZEV) Program set to pause March 31, some organizations are concerned funds will be completely depleted prior to its completion date, leaving Canadians questioning if the government will abandon the effort.
“This decision is particularly frustrating for dealers, who have done their part in building the infrastructure and resources required to support the EV transition,” said Tim Reuss, president and CEO of Canadian Automobile Dealers Association (CADA) in a statement. “Now we are seeing governments at both the federal and provincial levels decommitting from a difficult and costly process that they, themselves, instituted. There is obvious hypocrisy in imposing ambitious ZEV targets and affiliated penalties on the industry and consumers when the government is showing a clear lack of motivation and support to meet these goals.”
CADA, the Global Automakers of Canada and the Canadian Vehicle Manufactures’ Association (CVMA) hosted a press conference on Jan. 14 to for an end to federal mandates for EV sales, citing the end of the iZEV program and lack of infrastructure charging. Mandating EV sales cannot exist without the incentive program, the groups jointly announced.
“The end of the iZEV purchase incentive program while maintaining electric vehicle mandates will be a disaster for consumers, dealers, manufacturers and the Canadian economy,” the groups stated in the announcement.
“The federal government’s mandated ZEV sales targets are increasingly unrealistic and must end,” said Brian Kingston, president and CEO of the CMVA during the press conference in Ottawa. “Mandating Canadians to buy ZEVs without providing them the supports needed to switch to electric is a made-in-Canada policy failure.”
Reuss said it was hypocritical of the federal government to issue mandates but then announce an end of critical support like the iZEV program.
“The end of the federal consumer EV purchase incentive program while maintaining electric vehicle mandates will be a disaster for consumers, dealers, manufacturers and the Canadian economy,” he said during the press conference.
The incentives don’t need to be maintained in perpetuity but they are needed at this time until price parity exists as the gap in costs will hinder EV sales, stressed David Adams, GAC president and CEO.
“If the government is going to mandate manufacturers to put ZEVs into the marketplace and pay severe penalties for not doing so, then government needs to ensure that it is doing its part to address key barriers to EV uptake — price and infrastructure,” he said in Ottawa. “If they are not prepared to do that then the federal government (and Quebec and B.C.) must consider revising or eliminating their mandates as the fundamental assumptions and EV adoption rates on which the mandates were based, has changed.”
The iZEV program, aimed at accelerating the transition to net-zero emissions, has contributed to a rise in new zero-emission vehicle (ZEV) market share from 3.1 per cent in 2019 to 11.7 per cent in 2023, according to the federal government. The figure climbed further to 14.2 per cent in the first three quarters of 2024, with a record 16.5 per cent market share achieved in the third quarter.
More than 546,000 vehicles have been purchased through Canada’s Incentives for iZEV Program since its launch in 2019.
“I am delighted to see the success of the iZEV Program,” said Anita Anand, Federal Minister of Transport and Internal Trade. “Since 2015, our government has been committed to building a greener economy and combatting climate change. We will continue to engage with industry, environmental groups and across jurisdictions to foster collaboration in decarbonizing the country’s transportation sector and becoming a global leader in zero-emission vehicles.”
Though the iZEV Program was set to pause March 31 this year, or once funding is exhausted, Nate Wallace, clean transportation program manager for Environmental Defence said in a statement, believes the government knew the program would run out of funds in early 2025.
“There was an opportunity in Finance Minister Chrystia Freeland’s recent Fall Economic Statement to include stopgap funding to top up the program and prevent this from occurring. Its omission indicates a significant lack of foresight, and it means Canadians are now paying the price,” said Wallace. “Effective climate policies like the iZEV program that tie emissions reductions with measures that reduce the cost of living should not fall victim to the chaos in Ottawa. As Canada approaches a likely early federal election, we hope that all political parties indicate their support for the return of a similar program that helps Canadians afford zero-emission vehicles.”
Incentives are currently available for medium- and heavy-duty zero-emission vehicle purchases through the iMHZEV Program, which runs until March 31, 2026, subject to funding.
Shuttering green EV program leaves some seeing red
Derek Clouthier
Groups push for end to mandates as incentives fade away
A program designed to encourage Canadians to buy zero-emission vehicles will pause by the end of this quarter as planned.However, with Canada’s Incentives for Zero-Emission Vehicles (iZEV) Program set to pause March 31, some organizations are concerned funds will be completely depleted prior to its completion date, leaving Canadians questioning if the government will abandon the effort.
“This decision is particularly frustrating for dealers, who have done their part in building the infrastructure and resources required to support the EV transition,” said Tim Reuss, president and CEO of Canadian Automobile Dealers Association (CADA) in a statement. “Now we are seeing governments at both the federal and provincial levels decommitting from a difficult and costly process that they, themselves, instituted. There is obvious hypocrisy in imposing ambitious ZEV targets and affiliated penalties on the industry and consumers when the government is showing a clear lack of motivation and support to meet these goals.”
CADA, the Global Automakers of Canada and the Canadian Vehicle Manufactures’ Association (CVMA) hosted a press conference on Jan. 14 to for an end to federal mandates for EV sales, citing the end of the iZEV program and lack of infrastructure charging. Mandating EV sales cannot exist without the incentive program, the groups jointly announced.
“The end of the iZEV purchase incentive program while maintaining electric vehicle mandates will be a disaster for consumers, dealers, manufacturers and the Canadian economy,” the groups stated in the announcement.
“The federal government’s mandated ZEV sales targets are increasingly unrealistic and must end,” said Brian Kingston, president and CEO of the CMVA during the press conference in Ottawa. “Mandating Canadians to buy ZEVs without providing them the supports needed to switch to electric is a made-in-Canada policy failure.”
Reuss said it was hypocritical of the federal government to issue mandates but then announce an end of critical support like the iZEV program.
“The end of the federal consumer EV purchase incentive program while maintaining electric vehicle mandates will be a disaster for consumers, dealers, manufacturers and the Canadian economy,” he said during the press conference.
The incentives don’t need to be maintained in perpetuity but they are needed at this time until price parity exists as the gap in costs will hinder EV sales, stressed David Adams, GAC president and CEO.
“If the government is going to mandate manufacturers to put ZEVs into the marketplace and pay severe penalties for not doing so, then government needs to ensure that it is doing its part to address key barriers to EV uptake — price and infrastructure,” he said in Ottawa. “If they are not prepared to do that then the federal government (and Quebec and B.C.) must consider revising or eliminating their mandates as the fundamental assumptions and EV adoption rates on which the mandates were based, has changed.”
The iZEV program, aimed at accelerating the transition to net-zero emissions, has contributed to a rise in new zero-emission vehicle (ZEV) market share from 3.1 per cent in 2019 to 11.7 per cent in 2023, according to the federal government. The figure climbed further to 14.2 per cent in the first three quarters of 2024, with a record 16.5 per cent market share achieved in the third quarter.
More than 546,000 vehicles have been purchased through Canada’s Incentives for iZEV Program since its launch in 2019.
“I am delighted to see the success of the iZEV Program,” said Anita Anand, Federal Minister of Transport and Internal Trade. “Since 2015, our government has been committed to building a greener economy and combatting climate change. We will continue to engage with industry, environmental groups and across jurisdictions to foster collaboration in decarbonizing the country’s transportation sector and becoming a global leader in zero-emission vehicles.”
Though the iZEV Program was set to pause March 31 this year, or once funding is exhausted, Nate Wallace, clean transportation program manager for Environmental Defence said in a statement, believes the government knew the program would run out of funds in early 2025.
“There was an opportunity in Finance Minister Chrystia Freeland’s recent Fall Economic Statement to include stopgap funding to top up the program and prevent this from occurring. Its omission indicates a significant lack of foresight, and it means Canadians are now paying the price,” said Wallace. “Effective climate policies like the iZEV program that tie emissions reductions with measures that reduce the cost of living should not fall victim to the chaos in Ottawa. As Canada approaches a likely early federal election, we hope that all political parties indicate their support for the return of a similar program that helps Canadians afford zero-emission vehicles.”
Incentives are currently available for medium- and heavy-duty zero-emission vehicle purchases through the iMHZEV Program, which runs until March 31, 2026, subject to funding.
