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Canada to End Sales of Gas-Powered Cars by 2035

Canada is reportedly planning to phase out the sale of gas-powered cars by 2035.

Under the rules, to be unveiled Tuesday, electric or hydrogen-powered cars will account for 20 percent of new sales by 2026, 60 percent by 2030, and 100 percent by 2035, the Canadian Broadcasting Corporation and Toronto Star have learned.

A 2022 government analysis estimated the cost to drivers of such a phaseout, finding that Canadian car owners would pay an additional $24.5 billion over 25 years, largely reflecting the higher cost of EVs and the cost of installing in-home chargers. At the same time, the analysis found, car owners would save $33.9 billion on fuel.

The forthcoming rules mirror similar mandates abroad. China, South Korea, and the U.K. are all planning to phase out gas-powered cars by 2035, as are several U.S. states, including California, New York, and Massachusetts.

The new regulations will apply to automakers, not dealers, and are designed in part to ensure that manufacturers provide a robust supply of electric vehicles to Canadian drivers.

“One of the issues with EVs is that we’re competing against other markets where the actual EVs are being shipped to,” an unnamed senior official told the Toronto Star. The official said the new rules will “make sure supply is available and that consumers in all provinces are going to get quicker access to the vehicles.

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