Environment and Climate Change Canada proposed forthcoming regulations aimed at incentivizing low-emission passenger vehicle adoption in Canada. The regulations will take effect in 2026 and create a program of credits and deficits to reward car manufacturers and importers for meeting “zero emission vehicle” sales quotas.

On Friday, the United States House of Representatives passed the Inflation Reduction Act, clearing the way for President Biden to imminently sign the legislation, which passed the Senate last week, into law.

A proposed electric vehicle tax credit in US Democrats’ Build Back Better bill is raising trade tensions with Canada and Mexico. Both countries claim the policy, if included in the final bill, will violate the USMCA (formerly NAFTA) by disadvantaging their respective auto manufacturing industries.

New York Governor Kathy Hochul signed a bill Wednesday enshrining into law a goal to make all new passenger vehicles sold or leased in the state zero emission by 2035.