Quebec is pausing the Roulez vert program as of February 2025, while passing a bill to ban combustion vehicle sales starting in 2035

The Quebec government is putting the public on notice about the future of its zero-emission vehicle rebate program.

Following a 2024 rush on Roulez vert funding for zero-emission passenger vehicles and home chargers, the program will stop beginning February 2025, say Quebec officials. They add the program may return following the provincial budget in April 2025.

Already Quebec was anticipating a reduction in its rebate from $7,000 in 2024 to $4,000 on January 1, 2025. This was an anticipated change as part of a plan to phase out the rebate entirely by 2027. It is believed the impending deadline created a surge of buyers in the province that exhausted the rebate prematurely.

On the same day as the announcement about suspending the Roulez vert rebate, the Quebec government passed a bill to ban the sale of most passenger combustion vehicles by December 31, 2035. The ban covers new and used sales of most combustion vehicle models from 2035 on.

Since July 2024 over 32 per cent of all new vehicles sold in Quebec have been zero-emission. The sales ban makes Quebec the most aggressive jurisdiction in Canada for zero-emission vehicle adoption policies, however it will also soon become one of the few that do not offer a rebate.

Quebec funding difficulties

The news about Quebec’s Roulez vert program follows the quiet suspension of the province’s zero-emission medium- and heavy-duty vehicle rebate program, Écocamionnage, this September.

(At the time, Quebec officials cited the same reason for pausing Écocamionnage, saying that unexpected demand had exhausted its funds.)

Neither funding development is meeting positive industry reception.

“We at EMC consider this pause on EV rebates, and especially infrastructure rebates, to be unacceptable as it only adds to the market uncertainty that the industry is currently facing,” states Daniel Breton, President & CEO of Electric Mobility Canada.

“What we need from the Quebec government is assurance that the EV rebates will return, and be retroactive, and that the EV infrastructure rebate will continue during this time, as well as the return of the Écocamionnage program.”

Previously under the Écocamionnage program Quebec was providing up to $75,000 to acquire zero-emission medium- and heavy-duty vehicles.

It is not clear if the program will return and, if it does, what the rebate will be.

Rebate impact on dealerships

Many prospective EV buyers may be unhappy about losing an important, cost-offsetting rebate. But dealerships in Quebec say the abrupt change is causing “serious concerns” about the stability of their businesses.

“Dealers have been exemplary partners in Quebec’s vast energy transition undertaking. The decision to suspend the Roulez Vert program, without transitional measures, jeopardizes market stability and creates regrettable uncertainty for our entire industry,” says Ian Sam Yue Chi, CEO of the Corporation des concessionnaires automobiles du Québec (CCAQ), in a press release.

The concern among dealership is that without the Roulez vert rebate they will not be able to sell their necessary quota of zero-emission vehicles after February 1, 2025. This would force the dealerships to incur penalties, which they then need to offset.

To mitigate this the CCAQ suggests the government suspend penalties for missing the quota while the rebate program waits for a top up.

A ban and no rebate. What’s the future?

It remains to be seen what effect the rebate suspension and combustion vehicle sales ban will have on ZEV adoption rates in Quebec and Canada.

In 2024 ZEV adoption climbed to all-time highs. That is driven in large part by Quebec’s soaring new ZEV sales, which topped 32.8 per cent in Q3 2024.

With the upcoming rebate stoppage, those provincial and national numbers could sag quickly. However, buyers in Quebec are still eligible for the federal $5,000 ZEV incentive with the purchase of a qualifying vehicle.

It is worth noting, though, that the federal rebate is also set to expire March 31, 2025. It was not disclosed in the recent 2024 Fall Economic Statement if the government intends to top up the fund.