Extending Federal Incentives to Used Electric Vehicles: The Latest Progress Report on Canada’s Emissions Reduction Plan

2023-12-25 09:00:00

The federal government will study the possibility of extending its incentive program for the purchase of zero-emission vehicles to used vehicles, according to the latest progress report on Canada’s Emissions Reduction Plan.

The federal program currently only offers incentives for the purchase of new vehicles.

Neither the office of Transport Minister Pablo Rodriguez nor that of Environment Minister Steven Guilbeault would confirm whether discussions were underway to extend the incentive program.

In a media statement, Mr. Rodriguez’s office referenced his latest ministerial mandate letter, which commits the minister to improving affordability and [à accélérer] the adoption of zero-emission vehicles, including used vehicles, for Canadian households and businesses.

Provinces like Nova Scotia, New Brunswick and Quebec already offer consumers incentives to purchase used electric vehicles.

At a press conference on Tuesday, Mr. Guilbeault seemed unaware that the government was considering such a measure for used vehicles.

Right now, at the federal level, the purchase incentive is $5,000 and that’s the plan we have moving forward, he told reporters. What will happen in the future? Will we change it? Will we adapt it? I do not know.

Necessary incentives

The federal government last week announced new regulations requiring all new vehicles sold to be fully electric, plug-in hybrid or fuel cell by 2035.

A think tank is calling on Ottawa to extend incentives to used vehicles.

The used market is growing, and not all Canadians can afford to buy a new vehicle, whether gas or electric, said Joanna Kyriazis, director of public affairs for Clean Energy Canada .

Helping low- and middle-income Canadians purchase used electric vehicles […] is a big step forward.

The Canadian Vehicle Manufacturers’ Association (CVA), which represents Ford, Stellantis and General Motors, said expanding the federal incentive program might encourage reluctant drivers to switch vehicles, but the incentives must be large enough , according to the Association.

You might have a slightly lower incentive for used vehicles, but it has to be enough to help Canadians transition […] to a new technology that still raises concerns and questions, said Brian Kingston, president and CEO of CVMA.

With information from CBC

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