Canada to announce all new cars must be zero emissions by 2035

Canada expects to announce this week that all new cars will have to be zero emissions by 2035, a senior government source said, as Ottawa is set to unveil new regulations in the latest example of countries around the world pushing for electrification.

The new rules, known as the Electric Vehicle Availability Standard, would help ensure supply is available to the Canadian market and shorten wait times to get an electric vehicle, the source told Reuters, confirming earlier media reports.

The Canadian provinces of British Columbia and Quebec already have the same regulated sales targets.

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Zero-emission vehicles - which include battery electric, plug-in and hydrogen models - must represent 20 per cent of all new car sales in 2026, 60 per cent in 2030 and 100 per cent in 2035, the source said on condition of anonymity.

Officials at Canada's environment ministry declined comment.

Global EV sales now make up about 13 per cent of all vehicle sales and are likely to rise to between 40-45 per cent of the market by the end of the decade, according to the Paris-based International Energy Agency (IEA).

In the United States, the Republican-led House of Representatives voted earlier this month to bar the Biden administration from moving forward with stringent vehicle emissions regulations that would result in 67% of new vehicles being electric by 2032. The vote drew a veto threat from the White House.

Market leader Tesla sold 325,291 vehicles in the United States during the first half of 2023. General Motors’ Chevrolet brand was a distant second at 34,943, trailed by Ford, Hyundai and Rivian.

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Editing by Sandra Maler and Lisa Shumaker