Canada budget puts billions behind push for emobility

by Apr 29, 2022

The Canadian government presented the 2030 Emissions Reduction Plan at the start of April 2022, highlighting the long awaited efforts that will allow Canada to jump into the electrification transition occurring within the transportation industry. The plan not only confirmed goals of internal combustion engine phase out in the next five years from the previously decided 2035 deadline, but was also supplemented by additional initiatives.

By 2026, at least 20 per cent of new car sales in this sector are to be electric and by 2030 at least 60 per cent. As decided in June 2021, only zero-emission passenger cars and light commercial vehicles are then to be sold in Canada from 2035. Previously, this target was set for 2040. For medium- and heavy-duty commercial vehicles, an electric share of 35 per cent is to be achieved by 2030, and an electric share of 100 per cent in certain vehicle categories by 2040. To make the transition to electric vehicles a success, the government is investing 1.7 billion Canadian dollars (1.22 billion euros) in purchase subsidies for electric passenger cars and light commercial vehicles. Additional funding of 400 million dollars (286 million euros) has been slated for expanding the network by 50,000 charging stations. In addition, the Canada Infrastructure Bank will invest $500 million (€358 million) in charging and refueling infrastructure for zero-emission vehicles. Canada aims to achieve net-zero emissions across the economy by 2050.

Additionally, the government has also highlighted electromobility efforts in the 2022 financial budget that has been presented. 3.8 billion Canadian dollars (around 2.8 billion euros) will go toward implementing Canada’s first strategy for critical minerals for use in electric cars, among other things. The Government will also allocate more than 3 billion Canadian dollars (2.2 billion euros) to make electric vehicles “more affordable” and build a national charging station network. This includes $1.7 billion (€1.25 billion) over five years to extend the Incentives for the Zero-Emission Vehicles rebate program through March 2025 and $547.5 million (€400 million over four years to launch a new purchase incentive program for medium- and heavy-duty electric vehicles. In addition, $400 million (286 million euros) will be spent on charging stations to add 50,000 chargers to the network. In addition, the Canada Infrastructure Bank will invest $500 million (€358 million) in charging and refueling infrastructure for zero-emission vehicles.

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