Zero-emission vehicles (ZEVs) can function without emitting greenhouse gases (GHGs) while in operation. Given that the transportation sector is Canada’s second-largest source of GHGs, the use of ZEVs is an important pathway to cutting Canada’s emissions. With that in mind, the Standing Committee on Environment and Sustainable Development (the Committee) studied how Canada could encourage the production and purchase of ZEVs in Canada. The Committee held four meetings on this subject, beginning on 26 October 2020, and has prepared 13 recommendations for the Government of Canada.

The Government of Canada has set ambitious targets to get more ZEVs on Canadian roads. Ultimately, it aims for ZEVs to make up 100% of new light-duty vehicle sales by 2040. However, the Committee heard that Canada will not fulfill the federal sales targets unless it takes additional measures to encourage the adoption of ZEVs. To identify these measures, the Committee analyzed factors that affect the purchase and production of ZEVs. It finds that the federal government can, and should, play a more active role in promoting the uptake of ZEVs.

The relatively higher purchase price of ZEVs, relative to conventional vehicles, makes it harder for some Canadians to afford them. Witnesses noted that the existing federal purchase incentive program, known as iZEV, could be amended to make ZEVs more affordable. The Committee has recommended several changes to the iZEV program, including expanding its coverage to used vehicles, creating a program to trade in old vehicles for scrap, and collecting more data to better understand the demographics of users of the incentive.

Although Canada produces some ZEVs and has a strong automotive sector, witnesses said the country could do more to encourage the domestic manufacture of ZEVs and their components. Based on this testimony, the Committee has identified some areas where the federal government could support expanded domestic manufacturing, including the production and recycling of ZEV batteries.

However, it will not be enough to produce ZEVs in Canada: they must also be offered for sale in the country. Several witnesses encouraged the federal government to adopt a policy, known as a ZEV standard, that could help increase vehicle supply by requiring producers to sell ZEVs in Canada. The Committee has made a recommendation to the Government of Canada about working with industry and the provinces and territories to develop a national ZEV standard.

The Committee has also made recommendations about improving the availability of charging and refueling infrastructure, raising consumer awareness, and identifying opportunities for a low-carbon transition in the trucking sector. All these actions can help support the adoption of ZEVs.

There are clear advantages to putting more ZEVs on the road. These vehicles can help Canada address climate change, reduce air pollution, create jobs and strengthen the country’s economy. By taking additional measures to encourage the uptake of ZEVs, the Government of Canada will be helping to deliver tangible and lasting benefits to Canadians.