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The B.C. Government has announced an update to its zero-emission vehicles ("ZEV") framework to align provincial ZEV sales targets with federal targets and make immediate regulatory changes. These changes expand the types of vehicles eligible for ZEV credits, lower range requirements for certain vehicles, and offer new ways for automakers to earn ZEV credits by making ZEVs more affordable and accessible.1
B.C. announced these updates as the federal government reviews national ZEV targets and mandates, signaling effort at alignment between provincial and federal mandates.
B.C. Contemplates Legislative Change in Spring 2026 to Align Provincial and Federal Approaches to ZEV Sales Targets
B.C. will adjust its previously announced ZEV sales targets through upcoming legislative change to the Zero-Emission Vehicles Act. The current targets require 90% ZEV sales by 2030 and 100% by 2035.2 The new targets will be guided by a review of CleanBC (the province's climate plan to reduce emissions and promote clean energy use)3 and consultations with consumers and industry.
The B.C. government noted it will adjust provincial ZEV sales targets to align with the federal decision, stating that "there should be one clear, harmonized [zero-emission] sales target for the country".4
B.C. Takes Immediate Steps to Relieve Pressure on Automakers and Improve Accessibility
B.C.'s immediate updates to the Zero-Emission Vehicles Regulation will help automakers meet annual ZEV targets, reduce ZEV costs, and expand ZEV charging port access.
The first regulatory change expands the model year options for vehicles eligible for ZEV credits, giving automakers more flexibility to meet compliance requirements. B.C. also lowered the range requirements, which is the distance a ZEV travels on a single charge, for plug-in hybrid electric vehicles and battery electric vehicles.5
The second regulatory change allows automakers to earn additional ZEV credits by making ZEVs more accessible to consumers. Automakers can now earn credits by selling ZEVs at discounted rates, offering interest-free or low-interest financing, providing complimentary home charging stations or charging credits, and investing in public charging projects.6 When issuing credits under the B.C. ZEV program, officials will consider the affordability of the vehicle,7 encouraging automakers to offer lower-priced vehicles.
We will continue to monitor ZEV regulations and policy changes across Canada. Please feel free to reach out to the authors of this bulletin with any questions regarding ZEV-related matters.
Footnotes
1 Government of British Columbia, "B.C. brings in measures to support EV adoption, auto sector, while awaiting federal decision" (November 18, 2025) online: BC Gov News.
2 Government of British Columbia, "Zero-Emission Vehicles Act" (July 24, 2025) online: Province of British Columbia.
3 Supra note 1.
4 Supra note 1.
5 Ibid.
6 "Province of British Columbia, Order of the Lieutenant Governor in Council Order in Council" No. 519, Zero-Emission Vehicles Regulation, B.C. Reg. 196/2020, at 4.
7 Ibid.
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2025
