Liberals set 2035 goal for electric vehicle sales

The Liberal government is speeding up its goal for when it wants to see all light-duty vehicles sold in Canada to be electric.

Transport Minister Omar Alghabra announced Tuesday that by 2035 all new cars and light-duty trucks sold in the country will be zero-emission vehicles. 

Our goals are ambitious but that’s what it takes to fight climate change and build a green economy. Today, we announced that 100% of new car and passenger truck sales will be zero-emission by 2035. This is an important step forward on the road to net-zero future. pic.twitter.com/2uGfzq6mxo

— Omar Alghabra (@OmarAlghabra) June 29, 2021

Until now the government had set 2040 as the target for when it wants to see all passenger vehicles sold to be powered by this technology.

Alghabra cited a recent report from the International Energy Agency that says by 2035 nearly all new light-duty vehicle sales would have to be electric to achieve net-zero emissions by mid-century.

Canada has committed that its economy will either emit no greenhouse gas emissions or offset its emissions by 2050.

"Let me just say, our target is ambitious, undoubtedly, but it is a must," Alghabra said of the new electric vehicle target.

"We believe that it's doable. It needs determination, it needs focus, it needs effort."

It also needs money.

Alghabra cited how the government has already poured at least $600 million into a rebate program that offers consumers a break when they buy new electric vehicles in hopes to get more of them on the road. 

"We know that we need to do more," Alghabra said Tuesday, explaining the program would be expanded to include more categories of vehicles, including ones that are used. He didn't provide a specific dollar figure on what the changes could cost.

The existing program offers buyers an upfront discount of up to either $5,000 or $2,500 and sellers then have to claim the incentives to be reimbursed.

Federal officials last fall said the rebates have been popular, but warned it wasn't going to be enough to reach the federal government's first target of electric cars making up 10 per cent of sales by 2025. 

Environment Minister Jonathan Wilkinson said with the tougher goal the country would work with the United States on fuel efficiency and consult with stakeholders on new regulatory measures. 

Those include bringing in a possible mandate that would require the auto industry to make or sell more electric vehicles, which proponents of zero-emissions technology say helps to ensure there is more supply when consumers are in the market for a new vehicle.

"It is a mandatory target," Wilkinson said of the 2035 goal.

"This is where the world is going. This is where the where the world needs to go."

Joanna Kyriazis, a senior policy adviser at Clean Energy Canada, said electric vehicles comprise about three to four per cent of car sales in Canada, a far cry the goal to reach 10 per by 2025.

She said electric vehicle sales in France, the United Kingdom and Germany have seen a big jump, which she said shows Canada's new target needs to be supported by policies that see more of these vehicles available for purchase on dealership lots, more charging infrastructure and incentives aimed at electric trucks and SUVs. 

In a statement, the Global Automakers of Canada said industry shares the government's goal of "carbon elimination," but found the announcement lacking details on how to transition to 100 per cent sales of zero-emission vehicles by 2035.