As the shift towards a greener economy intensifies in Canada, an increasing number of provincial governments are taking the lead in reducing greenhouse gas emissions and promoting the use of zero-emission vehicles. In fact, Quebec is the latest province to implement such policies, and will ban the sale of gas-powered vehicles in the province by 2035.
Over the weekend, Premier François Legault revealed that Quebec will ban the sale of any new gas-powered vehicles come 2035, including small cars, SUVs, and vans, with the exception of industrial and commercial use vehicles, or vehicles that were purchased second-hand. The latest announcement is part of a $6.7 billion plan to combat climate change over the next five years, with a large portion of the funds allocated towards subsidies for electric vehicles.
Currently however, there are less than 2% of electric or hybrid vehicles on Quebec roads, meaning that the Quebec government will have a tough quest ahead with its ambition to reverse the trend. In fact, there were only 50,962 new electric and plug-in hybrid cars registered Canada, compared to 1.747 million gasoline cars. Nonetheless, by banning the sale of new gas-powered vehicles and by ensuring that car dealerships meet their electric-vehicle or plug-in hybrid vehicle sales quotas, the Quebec government is convinced it will meet its greenhouse-gas reducing climate initiatives by 2035. In the meantime, the Legault government will keep its Roulez Vert program, which provides tax rebates of up to $8,000 towards the purchase of a zero-emission vehicles.
In addition, the Quebec government also plans to ramp up the installation of roadside charging stations in order to keep up with forthcoming demand. Nonetheless, Quebec is the second province in Canada to impose such a ban on gas-powered vehicles, after British Columbia passed a similar law last year. In the US, California has also banned the sale of gasoline-powered vehicles by 2035 – something that other states will also follow suit on.
Information for this briefing was found via CBC News and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.