Today, the federal government launched a new auto industry strategy that (among other things) included a pivot from the Electric Vehicle Availability Standard to stronger vehicle GHG emission regulations. The strength of these regulations will be calibrated to “put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040.” Same direction of travel, but a different and slower route (the primary reason for which, it should be noted, is an effort to secure a sustainable domestic auto sector).
Last year, when Merran Smith and I undertook an independent review of CleanBC, B.C’s climate plan, we considered what should be done with provincial EV policy. We noted that to support increased consumer adoption of EVs three conditions must be satisfied:
1) Affordability
2) Sufficient public charging infrastructure
3) EV supply (availability) and consumer choice (diversity of models)
The federal strategy includes renewal of the $5,000 EV rebate ($2,500 for PHEVs), which helps satisfy the first condition. On the second, it commits to “investments of $1.5 billion through the Canada Infrastructure Bank’s Charging and Hydrogen Refueling Infrastructure Initiative, making it easier and more convenient for drivers to charge their EVs across the country.”
While the forthcoming federal vehicle emission regulations, if well designed, will contribute towards satisfying the third condition nationally, which provincial/territorial markets are best supplied will depend on provincial policy.
Quebec is maintaining both its EV mandate and its $2,000 rebate (stackable with the federal rebate), making it the top destination for EV inventory. Given price is the #1 determinant for EV buyers, similar rebates in Manitoba ($4,000), PEI ($4,000), Newfoundland and Labrador ($2,500) and the Yukon ($5,000) will drive inventory to these markets.
B.C “paused” its provincial rebate and Minister of Energy and Climate Solutions, Adrian Dix, has said he sees this as a federal responsibility. With today’s announcement, this has now been addressed. He also chided the federal government for its (then) 100% tariff on Chinese EVs. This too has been remedied.
Similar to Minister Dix, our review concluded that the provincial EV sales requirements for 2030 (90%) and 2035 (100%) were too aggressive, and should be moderated. Minister Dix suggested that provincial aims should be aligned with federal aims, which were then under review. We now know the scale of federal ambition: 75% EV sales by 2035 and 90% EV sales by 2040.
Our CleanBC review recommended maintaining B.C’s Zero Emission Vehicle Act (ZEVA), but amending the targets to 50-60% in 2030, and 90% in 2035 (eliminating the ban on ICE vehicles), and supported additional regulatory compliance flexibilities to enhance consumer affordability and access to charging (which the government advanced in November). We also acknowledged a key message from the EV charging sector: that ZEVA greatly strengthens market certainty, which bolsters the case for investment in public charging.
Given these federal changes, does B.C still need ZEVA? In my view, the answer is unequivocally yes.
Why?
We don’t want to return to the era of limited (or no) EV inventory on dealership lots, and months to years-long waitlists. And we do want to continue to secure and increase the wide ranging benefits of growth in EV adoption:
- Affordability: An early-2025 survey of more than 5,100 British Columbia EV drivers confirmed what analysts have long suspected: Going electric keeps more money in your pocket. Compared with their previous gasoline vehicles, 97% reported lower fuel costs, while 90% reported reduced maintenance expenses. A ballpark estimate of the fuel cost savings of the 210,000 EV drivers in B.C is $467 million. That’s real money in people’s pockets.
- Jobs and Economic Growth: An estimated 384 companies compete in B.C’s zero emission vehicle sector; the cluster directly provides 8,280 full-time jobs and contributes $920 million to GDP.
- Health: Less air pollution in communities, reducing the $1.3 billion per year in health impacts from on-road transportation in B.C., including ~160 premature deaths.
- Reduced climate pollution: As of the end of June 2025, over 210,000 light-duty ZEVs are now registered in B.C., compared to just over 3,000 in 2015. That delivers in the ballpark of 700,000 tonnes per year less climate pollution.
The bottom line: By maintaining the provincial Zero Emission Vehicle Act—but amending the target trajectory to 2030 and 2035 to more achievable levels—British Columbia stands to disproportionately capture federal financial support for consumer purchases of EVs and investment in charging infrastructure, while ensuring British Columbians have a growing number of EVs to choose from, including more affordable Chinese EVs. In doing so, British Columbians will continue to benefit from greater access to more affordable EVs, better charging, and both the economic (affordability and jobs), climate, and health (lower pollution) benefits that accompany a shift to electrification.
Polaris Strategy + Insight 