OTTAWA — The Green Party of Canada is calling on the federal government to take bold steps to make electric vehicles (EVs) more affordable and accessible. The party warns that Canada is falling behind on its climate goals due to high prices and weak policy support.
Transportation is Canada’s second-largest source of greenhouse gas emissions, after fossil fuel production. Yet despite a federal mandate requiring 20% of new vehicle sales to be zero-emission by 2026, only 7.5% of vehicles sold last month were electric, less than half the target. This marks a steep decline from 18% in December 2023, before the federal government abruptly cancelled the $5,000 EV rebate.
The Green Party is proposing a three-part plan to reverse the slowdown in EV adoption and make clean transportation affordable for ordinary Canadians:
- Phase out tariffs on Chinese-made EVs over five years to allow more affordable electric cars and trucks into the Canadian market. Current tariffs keep prices high and limit consumer choice, while domestic manufacturers have been slow to offer lower-cost models.
- Restore the federal EV purchase rebate, starting at $5,000 and reduced by $1,000 each year to encourage early adoption. This incentive previously played a key role in growing EV sales across the country.
- Introduce a Scrap Vehicle Rebate, beginning at $500 and increasing by $500 each year up to a $3,000 maximum. The rebate would apply to internal-combustion vehicles and would be phased out once the majority of gas-powered cars and trucks have been turned in.
Together, these measures aim to lower upfront costs for Canadian drivers, improve air quality, and help Canada meet its zero-emission vehicle targets. They would also introduce long-overdue competition to the EV market, which is currently dominated by high-priced models.
Allowing low-cost Chinese EVs into the Canadian market would offer more choices for consumers at a time when families are struggling with rising costs for housing, food, and transportation. For example, the BYD Seagull is a Chinese EV with 305km range and fast-charging capability that sold for approximately $13,290 CAD in 2024. A Canadian two-car household replacing one vehicle with the Seagull could receive up to $7,000 in combined rebates under the Green Party’s proposal. That would bring the cost of a brand-new electric car down to as little as $6,000.
The Green Party warns that without stronger federal action, Canada risks missing both its emissions targets and the opportunity to deliver real cost savings to Canadians. The transition to clean transportation must be both environmentally effective and economically accessible. While Greens will continue to press for public transit that is affordable, low-carbon and reliable in all regions of Canada, including rural areas, it’s also clear that Canadians want choice. In moving away from the internal combustion engine, EVs are available and competitive.
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For more information or to arrange an interview:
Laurie MacMillan
Communications Director
Green Party of Canada