A government report suggests federal incentives for used electric vehicles may be in the works as Ottawa pushes to phase out gas-powered vehicles.
Canada’s latest emissions reduction progress report The federal government has said it will “consider the possibility of expanding the Zero Emission Vehicle Incentive (iZEV) program to include used vehicles.” However, three lines in the report do not provide any details.
Neither Transport Minister Pablo Rodriguez’s office nor Environment Minister Stephen Guilbeault’s office would say whether discussions are underway to expand the incentive program.
Rodriguez’s office said in a media statement: pointed to his latest ministerial mandate.the Minister said, “affordability and [accelerating] Adoption of zero-emission vehicles, including used vehicles, by Canadian households and businesses. ”
The mandate does not mention incentives for used cars. A few lines in a recent government report appear to be the first to say Ottawa is moving in that direction.
Provinces such as Nova Scotia, New Brunswick, and Quebec offer incentives to consumers to purchase used electric vehicles.
At a press conference on Tuesday, Guilbeault appeared unaware that the government was considering the move.
“Currently, the federal purchase incentive is $5,000, and that’s our plan moving forward,” he told reporters. “What will happen in the future? Will we change it? Will we adapt it? I don’t know.”
The federal government last week introduced new regulations requiring all new cars sold, including cars, SUVs and some pickup trucks, to be fully electric, plug-in hybrid or fuel cell electric by 2035. It was announced that the decision had been finalized.
The federal government is developing a final plan to phase out new gasoline-powered passenger cars by 2035, with incremental targets for manufacturers to meet.
A think tank is calling on Ottawa to expand incentives for used cars.
“The used market is growing, and not all Canadians can afford to buy a new gas or electric vehicle,” said Joanna Kyriazis, director of communications for Clean Energy Canada.
“Helping low- and middle-income Canadians purchase used electric vehicles and realize significant cost savings is a great step forward.”
The Canadian Automobile Manufacturers Association, which represents Ford, Stellantis and General Motors, said expanding federal incentive programs could encourage reluctant drivers to switch. But the association said the incentives must be large enough.
“We could make the used car incentives a little lower, but we hope it’s strong enough to help Canadians make the switch to new technology that they still have reservations about and questions about.” said Brian Kingston. , President and CEO of the Association.
