Government of Canada invests in zero-emission vehicles

Electric car charging in Montreal

The Government of Canada has proposed a $300 million investment over the next three years in a new federal purchase incentive for eligible zero-emission vehicles.

The Minister of Transport, the Honourable Marc Garneau, has highlighted how investments in zero-emissions vehicles in the 2019 budget would make it easier for Canadians to choose a zero-emission vehicle.

Garneau said: “The time to act on climate is now. The Government of Canada is working to accelerate the adoption of zero-emission vehicles to help make it easier for Canadians to be part of the solution to climate change and to reduce their daily driving costs. With these investments, Canada is joining a coalition of international partners working towards a future of zero-emission transportation.”

The Honourable Catherine McKenna, Minister of Environment and Climate Change, and the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, were also in Vancouver (British Columbia) and Toronto (Ontario) respectively to highlight the new incentive programme.

McKenna said: “We are working with Canadians across the country to support practical and affordable solutions to fight climate change. The transportation sector is key to Canada’s economy – but it also accounts for a quarter of our emissions. Making sure Canadians have access to options to get where they need to go in a cleaner, cheaper, faster way will protect our environment and grow our economy.”

The 2019 budget provides support to expand the network of zero-emission vehicle charging and refuelling stations, and is creating new incentives for people and businesses to purchase zero-emission vehicles.

The purchase incentive for zero-emission vehicles will apply to eligible new vehicles that are purchased or leased on or after the 1 May 2019. This incentive programme is a measure announced in the 2019 budget and is subject to Parliamentary approval.

To be eligible for incentives, a vehicle must have a base-model manufacturer’s suggested retail price of less than $45,000 for passenger vehicles with six or fewer seats, and less than $55,000 for vehicles with seven or more seats. For eligible vehicles with six or fewer seats, higher priced versions are eligible as long as the final manufacturer’s suggested retail price is $55,000 or less.

Canadians who purchase or lease an eligible battery electric, hydrogen fuel cell, or longer range plug-in hybrid vehicle, will receive an incentive of $5,000. Canadians who purchase or lease a shorter-range plug-in hybrid vehicle will receive an incentive of $2,500.