Canada and the United States seem to be moving towards adopting electric vehicles.

The American Environmental Protection Agency should abandon its requirement that 60% of vehicles produced be electric vehicles by 2030. Canada, on the other hand, aims for 100% by 2035.

Different Objectives

In the United States, the Environmental Protection Agency (EPA) is expected to drop the requirement that 60% of vehicle production should be electric by 2030, according to Reuters, with an announcement planned for March. In Canada, the federal government has committed to achieving 100% of zero-emission vehicle sales by 2035 for all new light-duty vehicles, with interim targets of at least 20% by 2026 and at least 60% by 2030.

Misalignment between Canada and the United States

Until recently, Canadian emission regulations followed those of the United States, but this changed in December 2023 when the federal government implemented its own ZEV standard. The fact that Canada has its own regulations, in addition to those of the United States, serves as an “insurance policy” to ensure they are not altered by leaders Canadians did not vote for.

A Divided American Market

The American market is already divided. We have states that are pro-clean cars and states that are not. In total, 17 states representing nearly 40% of the American auto market have adopted the rules in force in California. Canada is also following this path.

Concerns in Canada

$37 billion has been invested in EV and battery-related projects in Canada in the past three years. Canada has just surpassed China as the world’s leading country for its EV and battery supply chain potential, according to Bloomberg New Energy Finance. If our neighbors to the south do not keep up, much of these investments will not be fully utilized. Canada must also anticipate changes south of the border when making investment decisions, as it will become quite complicated for those working on this issue.