Canada To Ban Sales Of New Gas-Powered Cars, Light Trucks From 2035

Canada To Ban Sales Of New Gas-Powered Cars, Light Trucks From 2035

Canada has set a 2035 deadline to stop the sale of fuel-burning new cars and light-duty trucks as it strives to reach net-zero emissions across the country by 2050, as per a statement from the country’s transport regulator.

What Happened: Canada’s new zero-emissions target is five years ahead of its previous goal of 100% sales by 2040. The country plans a mix of investments, incentives, and regulations to achieve the goal.

The transportation sector accounts for one-quarter of Canada’s greenhouse gas emissions, the statement said, adding that the country will set interim targets for 2025 and 2030 for quicker adoption of electric vehicles.  

Canada is the latest country among G7 nations to set tighter deadlines. Germany and the United Kingdom have already committed to banning new sales by 2030. Japan is currently targeting 2035, while France, Canada, and the United States plan to ban sales by 2040. Italy is the only member of the G7 that has yet to make a commitment on this front.

Earlier this month, Volkswagen CEO Herbert Diess had chided the G7, or the Group of Seven nations, for failing to set an end-date for phasing out coal and called for more action to reach the 2030 climate goal to reduce greenhouse gas emissions to at least 55% below the 1990 levels.

Why It Matters: Canada has been making a series of announcements and investments in the electric vehicle space since the beginning of this year. Auto parts makers Magna International Inc (MGA) and Dana Inc (DAN) have revealed plans to scale up electric vehicle operations. 

On Tuesday, General Motors Co (GM) unveiled plans to accelerate the timeline and scale to make the  BrightDrop electric EV600 light commercial vehicle at Ingersoll, Ontario. GM revealed plans in January and now plans to “double the number of units built during the first year of production to keep pace with anticipated demand.”

Besides governments, automakers across the world, including Volkswagen Ag (VWAGY), Ford Motor Co (F), and GM are setting tighter deadlines and setting aside billions of dollars for a fast switchover to a fully electric vehicle lineup, a disruption brought in and accelerated by Elon Musk-led Tesla Inc (TSLA).

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