Transportation plays a significant role in greenhouse gas emissions across Canada. In response, action plans have been developed at the territorial and federal levels to support the transition to zero-emission vehicles (ZEVs). These plans outline emission-reduction targets and incentives for ZEVs to help support their adoption.
What are Zero-Emission Vehicles (ZEVs)?
“A ZEV is a vehicle that either produces no tailpipe emissions or has the potential to produce no emissions.” (Natural Resources Canada). Examples include battery electric vehicles (BEV), plug-in hybrid vehicles (PHEV), and hydrogen fuel cell vehicles (FCV).
Canada’s Action Plan
In 2015, Canada signed the Paris Agreement, committing to reducing greenhouse gas (GHG) emissions by 40 to 45% below 2005 levels by 2030 and achieving net zero by 2050. In order to meet these goals, the Canadian Government created the Canadian Net-Zero Emissions Accountability Act (CNZEAA), which acts as a legal backbone to ensure plans and targets are set in place and met.
As part of the CNZEAA, the 2030 Emission Reduction Plan is Canada’s national strategy to reduce GHG emissions. This plan identifies high-emitting sectors and provides a road map to follow to achieve our GHG-reduction goals. The graphic below shows a projection of Canadian emissions based on the potential decarbonization of different sectors.
As a response to these acts and strategies, Transport Canada produced Canada’s Action Plan for Clean On-Road Transportation. This plan looks at the transition to ZEVs, investment in charging stations, sales regulations, ZEV technology and manufacturing, industry collaboration, research initiatives, and government actions, as well as supporting accessibility to ZEVs for all Canadians.
A key goal of the Clean On-Road Transportation plan is that all light-duty vehicles sold as of 2035 will be ZEVs, and it describes an incremental plan to reach this. For medium and heavy-duty vehicles, the plan aims to have 35% of sales be ZEVs by 2030, with 100% by 2040 for select types of vehicles. In order to ensure availability and a smooth transition, financial investment in incentive programs like the iZEV program will help Canadians better afford the transition through rebates. The Canadian government also has funding available for infrastructure, clean fuels, etc., available to local governments and organizations.
The iZEV program had incentives up to $5000 for ZEVs and up to $200,000 for medium and heavy-duty ZEVs. The program was originally set to run until March 2025, but because of high demand, the funds ran out by January 2025, and it was paused while the federal government decides what to do next. Additionally, the Canadian government has funded $600 million in ZEV rebates to Canadians, $14.9 billion in public and active transport, and $450 million in infrastructure, codes and standards in EV charging.
The Yukon’s Action Plan
In 2022, the Yukon Government introduced Our Clean Future: A Yukon Strategy For Climate Change, Energy And A Green Economy. This document outlines the climate issues facing the territory and presents targets to meet as tangible actions to meet 2030 climate goals.
As a part of Our Clean Future, greenhouse gas emissions in the Yukon were broken down into seven key areas. Road transportation was highlighted as the territory’s largest source of greenhouse gas emissions at 54%. It is estimated that commercial and personal vehicles have an equal split of those emissions.
To tackle the high emissions of the transportation sector, the territory came up with 6 objectives:
- Increase the number of zero-emission vehicles
- Reduce the use of carbon-intensive fuels
- Increase the use of public and active transportation
- Reduce the carbon footprint of medium and heavy-duty vehicles
- Increase the efficiency of travel
- Ensure infrastructure is resilient to climate change
Additionally, as a target, the territory set in place a goal to have 4800 zero-emission vehicles in the territory by 2030. This would mean approximately 1 in 8 vehicles will be zero-emission vehicles.
The Yukon Government introduced rebates on various types of electric vehicles to incentivize them, such as light-duty and commercial vehicles, bikes, motorcycles, snowmobiles, and boats. A rebate on the shipping cost on a used ZEV is also available. Below is a summary of the rebates offered by the Yukon Government; for more information, click here.
| Type | Rebate |
| New Light Duty ZEV | $3000 to $5000 |
| New Medium or Heavy-Duty Commercial ZEV | $10,000 |
| Used ZEV Shipping Cost | Up to $1500 |
| Electric Transportation | Up to $750 to $2500 |
| Electric Bikes | Up to $750 |
| Level 2 ZEV Charger | 50-90% of the installation cost |
Current Status of ZEVs in the Yukon
In the 3 years since the release of Canada’s Emission Reduction Plan and the Yukon’s Our Clean Future report, the percentage of ZEVs on the road has been increasing. In Canada, the Yukon has the 4th highest percentage of sales of Light Duty Zero-Emission Vehicles, with 5.8% of vehicles sold in late 2022 being light-duty ZEVs.
According to Our Clean Futures Yukon, there were 344 light duty ZEVs in the territory in 2023, which is a sharp increase in a few years from 15 in 2018. In February 2024, the Globe and Mail reported that zero-emission vehicles (ZEVs) made up 10.4% of new vehicle registrations in the Yukon for the third quarter of 2023.
Conclusion
As Canada lays out a pathway to increase the number of ZEVs nationwide, the Yukon is rolling out its own incentives and is experiencing a rise in ownership. By collaborating with government, businesses, and communities, the Yukon can set a strong example and move towards a cleaner and more sustainable solution for transportation.
Contributors
Author: Simon Kerkhof
Reviewed By: Trent Gardiner, Mackenzie Smith
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