Major countries and markets are leading the transition to electric vehicles by setting deadlines for phasing out internal combustion engine vehicles between 2025 and 2050.
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Norway will phase out sales of new internal combustion engine vehicles in 2025, followed by Singapore and Iceland by 2030.
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Canada aims to sell 100% non-polluting vehicles by 2035, with intermediate targets starting in 2026.
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The United States does not have a federal ban, but several states are aligning with California’s 2035 phase-out plan.
Many people have cried foul after the recent termination of the Canadian federal subsidy program for the purchase of EVs. Automakers and their dealers, in particular, feel cheated, as they must continue to invest heavily in product, training and tooling to meet the demands placed on EVs. In fact, in Canada, legally, only EVs will be offered for sale from 2035.
As the pill is already difficult to swallow for many, the federal government is committed to supporting the transition through incentive measures. The plan worked as nearly 550,000 PHEVs and EVs were sold in recent years, probably thanks to rebates. Without these subsidies, would there be so many new electric and hybrid vehicles on the roads? Hard to say. However, most experts agree that this would not have been the case. The problem is that they have been removed, which casts uncertainty over the entire sector, with the mandate looming less than ten years away. So far, the government has not reversed its plans for electric vehicles. And we think he won’t. The reason is that Canada is not alone.
Automakers call for end to federal EV mandates after iZEV program is canceled
The effort to reduce greenhouse gas emissions is global and is driving a transition from internal combustion engine (ICE) vehicles to electric solutions. Transportation accounts for around 25% of global emissions, making electrification a critical step in the fight against climate change. Several countries and regions have established timetables to phase out new internal combustion engine vehicles, with some setting ambitious targets.
Norway leads the transition
Norway is at the forefront of the global transition, aiming to completely ban sales of new internal combustion engine vehicles by 2025. This ambitious timetable is followed by Singapore and Iceland, which both set 2030 as the target year for phasing out new gasoline and diesel vehicles. The European Union, which has 27 member states, plans to ban the sale of new vehicles with internal combustion engines by 2035. There will, however, be some exceptions for vehicles running on biofuels, hydrogen or hybrids.
The North American Approach: Canada and the United States
As we have said, Canada has committed to phasing out new internal combustion engine vehicles by 2035, with interim targets to ensure that at least 20% of new vehicle sales do not produce emissions by 2026, reaching 60% by 2030. In contrast, the United States does not have a federal obligation to ban internal combustion engine vehicles, but aims for 50% of new vehicle sales be electric by 2030. States such as California, New York and Washington have adopted stricter regulations under the Advanced Clean Cars II rule, which gradually increases sales of electric vehicles. zero emissions between 2026 and 2035.
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Varied objectives in other regions
Chile and Hong Kong SAR have also committed to phasing out internal combustion engine vehicles by 2035. Thailand is positioning itself as an EV manufacturing hub, aiming for full electrification by 2035 and a medium-term target of 50% EV registrations by 2030. The Australian Capital Territory plans to ban the sale of new internal combustion engine vehicles by 2035, while most other states have not yet introduced binding mandates, but have proposed intermediate EV adoption targets. Costa Rica has set a more distant deadline, namely 2050. All this reflects varying levels of ambition from one country to another.
-Some countries, such as Japan and Switzerland, allow sales of hybrid and plug-in hybrid vehicles to continue. Japan has already banned pure internal combustion engine vehicles, but allows hybrid and fully electric options.
While many countries have legislated firm phase-out dates, others have made non-binding commitments or signed memorandums of understanding to encourage the adoption of electric vehicles. Existing internal combustion engine vehicles will still be allowed on the roads and sales of used models will continue in most regions.
What is remarkable here is that the combination of such large markets as California, New York, the EU (France, Germany), Canada and the UK (ban on new internal combustion engine vehicles in 2030, with hybrids allowed until 2035), all of which have similar mandates to Canada’s, is powerful enough to drive the entire industry away from the internal combustion engine, no matter what.
In short, if automakers want to continue building and selling cars, and making money, they will fold up and switch to EVs. They will continue to sell internal combustion engines and hybrids in markets where they are still legal, although it is doubtful whether investments will be made to develop new generations of gasoline engines. It is therefore inevitable that they will be gradually abandoned on a global scale.
This is why I believe the Canadian mandates will remain in effect. The way they are enforced and the penalties imposed for non-compliance should be reviewed, but at the end of the day, whether we like it or not, we have ten short years left to buy new internal combustion engines before they don’t disappear.
The subsidies only encouraged the first to act more quickly and convinced those who were hesitant to try EVs. The good news is that some automakers are offering deals on EVs, but this too shall pass.
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