The federal government’s Incentives for Zero-Emission Vehicles (iZEV) Program, credited with driving Canada’s electric and plug-in hybrid vehicle adoption, is set to pause by March 31, 2025, or earlier if its remaining funds are depleted.
Since its launch in 2019, the program has supported the purchase or lease of over 546,000 ZEVs, contributing to a steady rise in Canada’s ZEV market share—from 3.1% in 2019 to 14.2% in 2024. However, with only $71.8 million in funding left as of January 10, 2025, enough to support approximately 16,000 more ZEV purchases, the program’s impending halt is causing concern among industry stakeholders.
Electric Mobility Canada (EMC), an advocacy group for sustainable transportation, has criticized the government’s decision to end the iZEV program without a clear successor plan. EMC warns that the move could undermine Canada’s goal of achieving a 20% ZEV sales target by 2026.
“This creates uncertainty and risks derailing the momentum Canada has built in transitioning to cleaner transportation,” an EMC representative said.
The federal decision coincides with the suspension of Quebec’s Roulez vert ZEV incentive program, which will run out of funding and pause on February 1, 2025. The program has been instrumental in boosting ZEV sales in the province. While Quebec’s Ministry of Environment and Sustainable Development has expressed hope for renewed funding after the provincial budget in April, its future remains uncertain.
The simultaneous suspension of federal and provincial programs could significantly impact ZEV sales in 2025, posing challenges to Canada’s climate targets and efforts to reduce transportation emissions.
Businesses and organizations can continue to benefit from the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program, which remains operational until March 31, 2026, provided funding lasts. This initiative supports the adoption of zero-emission trucks and medium- to heavy-duty vehicles.
The iZEV program’s success has highlighted the importance of targeted incentives in accelerating the adoption of clean transportation technologies. However, experts emphasize that policy continuity and sustained funding are essential to maintaining consumer confidence and meeting climate goals.
As Canada approaches this pivotal moment, ZEV advocates are urging the federal government to commit to renewed funding and robust policies that ensure long-term growth in the zero-emission vehicle market.