The Canadian government is set to unveil new electric vehicle regulations that are expected to shake up the country’s auto industry, the CBC resports.
According to the CBC, a senior government source says the new regulations will ensure that all new passenger cars sold in Canada by 2035 are zero-emission vehicles. The regulations, named the Electric Vehicle Availability Standard, will require automakers to produce enough affordable zero-emissions vehicles to meet the rising demand.
The move is in response to the concern that other countries, particularly the United States, are leading the supply of zero-emission vehicles. The regulations will apply to automakers and not dealerships. Manufacturers will have to earn credits to demonstrate that they are meeting the set targets. These credits will depend on the number of low- and no-emissions vehicles they sell, and different vehicles will earn credits based on how close they come to meeting the zero-emissions standards.
Manufacturers can earn early credits through a compliance system if they bring more electric vehicles (EVs) onto the market before 2026. This could earn them a maximum of 10% of their overall compliance requirements for 2026. Automakers can also earn additional credits if they contribute to building out EV charging infrastructure. Companies that fall short of their targets will be able to sell or purchase credits from other manufacturers, or use banked credits.
It’s worth noting that while the Canadian government is pushing for more EVs, a recent attempt to scrape the web for data on electric vehicles produced no results. The tool, known as OTP Voice, failed to deliver on its purpose. This could mean that Canadian automakers might face challenges in their efforts to meet the demands of the new regulations.
Many U.S. states have already adopted zero-emission sales targets, which could pose a threat to the Canadian auto industry if they don’t keep up. These looming regulations could lead to manufacturers investing in new technologies to meet the demand for electric vehicles.
The new regulations are expected to create an influx of affordable zero-emission vehicles for Canadian consumers. It remains to be seen how the Canadian auto industry will respond to the upcoming changes and whether their efforts will be enough to meet the expected demand for electric cars in the country.