Canada’s Incentives for Zero-Emission Vehicles (iZEV) Programme has been paused as it has run out of allocated funds. The program, initially set to run until March 2025, has been so successful that it has fully committed its funding ahead of schedule.
As a result, customers who have already placed orders for electric vehicles (EVs) and received pre-approval for the incentive will still benefit from the subsidy, while others will need to pay the full price for their vehicles or delay their purchase.
While the iZEV program has been paused as of January 12, 2025, there is no clear indication of when, or if, it will resume. Transport Canada has emphasized that any updates regarding the program will be posted on its website, and authorized dealers will be notified.
Despite the pause, the government views the program’s success as a milestone. Over 546,000 electric vehicles have been partially funded since the program’s inception in 2019.
“I am delighted to see the success of the iZEV Program,” commented Anita Anand, Canada’s Minister of Transport and Internal Trade. “Since 2015, our Government has been committed to building a greener economy and combating climate change. We will continue to engage with industry, environmental groups, and jurisdictions to foster collaboration in decarbonizing the country’s transportation sector and becoming a global leader in zero-emission vehicles.”
The iZEV programme provided up to 5,000 Canadian dollars (about 3,400 euros) for new electric and plug-in hybrid vehicles with specific price caps. The pause comes as part of the program’s success in increasing zero-emission vehicle (ZEV) adoption, which helped Canada achieve a ZEV market share of 14.2% in the first three quarters of 2024, up from 11.7% in 2023. However, medium- and heavy-duty zero-emission vehicles remain unaffected by the pause and will continue to be incentivized under a separate program (iMHZEV), which runs until March 2026.
