Canada announces plan to phase out sales of gas-powered cars and trucks by 2035

Canada has officially unveiled new regulations set to phase out the sale of new gas-powered vehicles by 2035. Environment Minister Steven Guilbeault presented the Electric Vehicle Availability Standard on Tuesday, some of the details of which were leaked last week.

Under the proposed regulations, automakers must gradually increase the proportion of electric models in their lineup, starting at 20% in 2026, 60% by 2030, finally reaching 100% by 2035. This plan aims to align Canada with global efforts to reduce fossil fuel emissions and combat climate change. Guilbeault emphasized the importance of this transition, stating, “We are at a tipping point.”

Many Canadians are increasingly eager to make the switch to cleaner transportation, since it’s a win-win-win in savings, their heath, and the environment. Putting in place an Electric Vehicle Availability Standard fulfills a major climate commitment from our climate plan. Getting more electric vehicles on the road is another example of how we are taking climate action while helping make life more affordable. And our investments to position Canada as a significant player in the global electric vehicle manufacturing and battery supply chain shows how we are taking advantage of the economic opportunities provided by the emerging low-carbon economy – Guilbeault said.

According to the proposed regulations, automakers will face penalties for non-compliance, but they will have the option to purchase credits from others to offset the penalties. Additionally, automakers can invest in charging infrastructure. For every $20,000 spent on DC fast chargers that are operating before 2027, automakers can earn the equivalent of one credit.

These credits can start to be earned over the next two years ahead of the first deadline in 2026.

The proposed regulations also include an early credit system, encouraging automakers to introduce electric models ahead of schedule and invest in charging infrastructure. The minister highlighted the potential cost savings associated with electric vehicles, citing lower maintenance costs and the stability of electricity prices compared to volatile oil prices.

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