Through Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable, the government of Canada makes targeted and responsible investments to create good jobs, grow our economy, and build a Canada where nobody gets left behind.

“Budget 2022 is about growing our economy, creating good jobs, and building a Canada where nobody gets left behind. Our plan is responsible and considered, and it is going to mean more homes and good-paying jobs for Canadians; cleaner air and cleaner water for our children; and a stronger and more resilient economy for years to come.”

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Budget 2022 was developed with businesses like Nano One in mind. It’s a plan to invest in the kind of innovation and technology that will spur sustainable, economic growth, and a plan to make greener choices, like driving electric, more affordable for Canadians.”

The Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion

“We are grateful to have the opportunity to showcase our facility where our team of over 60 people is developing innovative technologies to make battery materials more sustainable and cost competitive. Critical minerals and their processing into battery materials will play a vital role in Canada’s mines to mobility strategy in the global push for cleaner lithium-ion batteries.”

Dan Blondal, CEO and Founder, Nano One

• Measures in Budget 2022 to fight climate change include:

  • More than $3 billion in funding to make zero-emission vehicles more affordable and build a national network of charging stations;
  • Significant new investments to protect our land, lakes, and oceans; and
  • The creation of the Canada Growth Fund to help attract tens of billions of dollars in private capital towards building a net-zero economy by 2050.

• Making the Switch to Zero-Emission Vehicles More Affordable

  To help make ZEVs more affordable for Canadians, the federal government has offered purchase incentives of up to $5,000 for eligible vehicles since 2019. This program has helped Canadians purchase or lease over 136,000 new ZEVs, but more support is needed to help Canadians get behind the wheel of zero-emission vehicles.

  • Budget 2022 proposes to provide $1.7 billion over five years, starting in 2022-23, with $0.8 million in remaining amortization, to Transport Canada to extend the Incentives for Zero-Emission Vehicles (iZEV) program until March 2025. Eligibility under the program will also be broadened to support the purchase of more vehicle models, including more vans, trucks, and SUVs, which will help make ZEVs more affordable. Further details will be announced by Transport Canada in the coming weeks.

• Reducing Emissions on the Road

  On-road transportation accounts for 20 per cent of Canada’s greenhouse gas emissions.

  • To accelerate the manufacturing and adoption of cleaner cars, the federal government will put in place a sales mandate to ensure at least 20 per cent of new light-duty vehicle sales will be zero-emission vehicles (ZEVs) by 2026, at least 60 per cent by 2030 and 100 per cent by 2035.
  • To reduce emissions from medium- and heavy-duty vehicles (MHDVs), the federal government will aim to achieve 35 per cent of total MHDV sales being ZEVs by 2030.
  • In addition, the federal government will develop a medium- and heavy-duty ZEV regulation to require 100 per cent MHDV sales to be ZEVs by 2040 for a subset of vehicle types based on feasibility, with interim 2030 regulated sales requirements that would vary for different vehicle categories based on feasibility, and explore interim targets for the mid-2020s.

• Building a National Network of Electric Vehicle Charging Stations

  Since 2015, the federal government has helped build almost 1,500 charging stations across the country. As more and more Canadians adopt zero-emission vehicles, we need to build the charging infrastructure that drivers can rely on, no matter where they’re going.

  • Budget 2022 announces that the Canada Infrastructure Bank will invest $500 million in large-scale urban and commercial ZEV charging and refuelling infrastructure. Funding will be sourced from the Canada Infrastructure Bank’s existing resources under its green infrastructure investment priority area.
  • Budget 2022 proposes to provide $400 million over five years, starting in 2022-23, to Natural Resources Canada to fund the deployment of ZEV charging infrastructure in sub-urban and remote communities through the Zero-Emission Vehicle Infrastructure Program (ZEVIP).
  • Budget 2022 proposes to provide $2.2 million over five years, starting in
    2022-23, to Natural Resources Canada to renew the Greening Government Operations Fleet Program, which will continue to conduct readiness assessments of federal buildings required to facilitate the transition of the federal vehicle fleet to ZEVs.

• Helping Businesses Switch to Medium- and Heavy-Duty Zero-Emission Vehicles

  Businesses across Canada want to upgrade their fleets to be part of the solution to climate change. However, those upgrades can be expensive, and businesses need to be confident that ZEVs can reliably transport their goods to market.

  • Budget 2022 proposes to provide $547.5 million over four years, starting in 2022-23, to Transport Canada to launch a new purchase incentive program for medium- and heavy-duty ZEVs.
  • Budget 2022 proposes to provide $33.8 million over five years, starting in 2022-23, with $42.1 million in remaining amortization, to Transport Canada to work with provinces and territories to develop and harmonize regulations and to conduct safety testing for long-haul zero-emission trucks.
  • To help decarbonize vehicles already on the road, Budget 2022 proposes to provide $199.6 million over five years, starting in 2022-23, and $0.4 million ongoing, to Natural Resources Canada to expand the Green Freight Assessment Program, which will be renamed the Green Freight Program. This will support assessments and retrofits of more vehicles and a greater diversity of fleet and vehicle types.

  With these investments, the government is taking a significant step towards reducing pollution on our roads, and is on track to meet its commitment to add 50,000 new ZEV chargers and hydrogen stations across Canada.

Related products

• Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable
• Budget Speech
• Backgrounder(s)

Jane Deeks
Director of Communications
Office of the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough
jane.deeks@hrsdc-rhdcc.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000