Electric Mobility Canada Responds to Federal Budget 2025
December 5, 2025
Electric Mobility Canada (EMC) welcomes the federal government’s commitment to advancing clean transportation as part of its climate competitiveness strategy unveiled in Budget 2025.
While some new measures support Canada’s industrial capacity, clean energy sector, and domestic supply chain, the lack of clarity around key zero-emission vehicle programs leaves some questions about the federal government’s path forward on electrification. “This budget is one more step toward a cleaner transportation future. Now, we need more clarity on implementation to ensure all Canadians benefit from electric mobility policies,” stated Daniel Breton, President and CEO, Electric Mobility Canada.
Some highlights include:
Critical Minerals Sovereign Fund: EMC welcomes the creation of the Critical Minerals Sovereign Fund to strategically invest in critical mineral projects and companies in the country, supporting Canada’s clean technology supply chain growth.
Expansion of the Critical Mineral Exploration Credit: The inclusion of new minerals such as manganese, molybdenum, and tungsten will further support the development of Canada’s EV battery supply chain.
Accelerated Investment Incentive for zero-emission vehicles: The reinstatement of the Accelerated Investment Incentive, including immediate expensing of zero-emission vehicles and clean energy technologies will encourage private-sector investment and support businesses in Canada’s EV industry.
Clean energy policy: EMC commends the government’s focus on regulatory certainty and investment de-risking for clean energy projects.
Buy Canadian policy: A new ‘’Buy Canadian’’ policy, directing public spending toward domestic suppliers for both goods and services, has the potential to strengthen Canada’s clean technology sector and foster innovation.
End of medium- and heavy-duty vehicle incentives: EMC is concerned by the conclusion of the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) program at the end of 2025-26. Electrifying commercial fleets is crucial to achieving national emissions targets, and sustained support for this sector is needed to maintain momentum in deployment.
No news regarding iZEV and ZEVIP: After having been announced twice in the last few months, there was no confirmation regarding the return of the Incentives for Zero-Emission Vehicles (iZEV) program. Additionally, despite being included in the Liberal platform in 2025, the Zero-Emission Vehicle Infrastructure Program (ZEVIP) was notably absent from the budget announcement. These programs remain critical to ensuring affordability, accessibility, and supply of electric vehicles across Canada.
Electric Mobility Canada stands ready to collaborate with all levels of government and industry to ensure these budget measures translate into real-world progress. Together, the country can build a cleaner, more resilient transportation system that benefits all Canadians.