The Canadian Trudeau government’s latest budget has set aside $CA435 million ($A458 million) to help accelerate the transition to cleaner vehicles, and its target for all new vehicles to be zero-emission vehicles by 2040.
Under the plan to ensure a transition to zero emissions transport, purchasers of an electric or hydrogen car under $CA45,000 ($A47,400) will receive $CA5,000 ($A5,270) assistance as well as a tax deduction for companies that opt ​​for these vehicles.
The 3 year, $CA300 million ($A315 million) financial incentive measure will become effective this year and will allow all Canadians to benefit from assistance to “go electric” – currently, only residents in two provinces are able to access assistance.
The British Columbia government currently offers $CA5,000 ($A5,270) as an incentive to purchase a zero emissions vehicle while in Quebec, residents can access $CA8,000 ($A8,430) financial assistance.
Companies will also receive a full tax deduction for the purchase of non-polluting vehicles in the first year of commissioning, up to a value of $CA55,000 ($A58,000), including sales tax.
The incentives are in line with a recent interim report from the Canadian Climate Action Advisory Council which recommended an incentive of up to $ 5,000 for zero-emission vehicles or plug-in hybrids for at least two years.
“The incentive should be available for at least a two-year period to help close the gap between the upfront costs of electric vehicles relative to gasoline or diesel models, making electric vehicles more affordable for middle- and lower-income Canadians,” says the report.
The budget also sets aside $CA130 million ($A136 million) to be directed to the Natural Resources Canada over five years for the deployment of EV charging stations starting in 2019-20.
An additional $5 million ($A5.3 million) will be set aside for to enable Transport Canada to work with automakers to put in place zero emissions vehicle sales targets for vehicles with a manufacturer’s list price of less than $CA45,000 ($A47,400).

Bridie Schmidt is associate editor for The Driven, sister site of Renew Economy. She has been writing about electric vehicles since 2018, and has a keen interest in the role that zero-emissions transport has to play in sustainability. She has participated in podcasts such as Download This Show with Marc Fennell and Shirtloads of Science with Karl Kruszelnicki and is co-organiser of the Northern Rivers Electric Vehicle Forum. Bridie also owns a Tesla Model Y and has it available for hire on evee.com.au.