Canada Passes Climate Accountability Law, Mandates 2035 Gas Vehicle Phase Out

If you find this post interesting, you can sign up for the firm’s monthly newsletter here. Each month’s newsletter contains a roundup of blog posts and commentary on climate news, law, and policy.

Against the backdrop of an extreme heatwave in Western Canada unlike any seen before and clearly exacerbated by anthropogenic climate change, the Liberal government of Canada on Tuesday announced a 2035 phase out target for light-duty gas cars and passenger trucks, and saw its Canadian Net-Zero Emissions Accountability Act (Bill C-12) pass the Canadian Senate. 

2035 Gas Vehicle Phase Out

Canada previously set a soft 2040 gas vehicle phase out target. The new target - which the government says will be “mandatory” - matches Quebec and California’s target for gas vehicle phase outs, but lags behind Norway and the UK’s respective 2025 and 2030 targets. En route to the 2035 phase out, Canada will also develop 2025 and 2030 interim vehicle transition targets. It’s unclear whether the government will effect its gas vehicle phase-out plans by means of rulemaking under an existing legislative framework or if it will require new legislation.

Canadian Net-Zero Emissions Accountability Act (Bill C-12) 

Bill C-12 was introduced last November. It sets a non-binding 2050 target for Canada to reduce its emissions to net-zero, and requires emission reduction plans for interim “milestone” target years. The government must explain itself and outline intended corrective actions if it misses a target. 

Upon its introduction, the proposed law was criticized for being non-binding and delaying its first milestone target year to 2030, at which point those emission reductions will likely be a future government’s problem. The bill has since been amended and in several respects strengthened, including through the addition of a required interim emission reduction “objective” for 2026. The law remains non-binding, though as I wrote in November, it's unlikely a binding federal climate accountability law would be compatible with Canada’s constitutional federalism structure. 

Many in the environmental community were concerned Bill C-12 wouldn’t make it through Parliament before the summer recess, especially with a likely election on the horizon that could have rendered it dead in the water. Having passed the House of Commons last week, the bill appears to have just made it through the Senate at the 11th hour.