The transportation sector was the second largest source of Canadian greenhouse gas emissions in 2016. From 2005 to 2016, transportation sector emissions grew about 6.8 percent, largely driven by passenger trucks and freight trucks. To change this trajectory, a number of provincial policies and incentives have been put in place, including: vehicle emission standards to improve fuel economy, standards for cleaner fuels, and goals for deploying more zero emission vehicles.

Provinces are also providing financial incentives (e.g. rebates) to help deploy zero emission vehicles. British Columbia offers financial incentives for the purchase of clean energy vehicles which include electric vehicles and hydrogen-fuel cell vehicles. While two provinces — Nova Scotia, and Quebec — offer financial incentives for the purchase of electric vehicles or the installation of electric vehicle charging stations.

Four provinces — Manitoba, New Brunswick, Nova Scotia, and Prince Edward Island — have electric vehicle deployment goals, and Quebec has a zero-emission vehicle standard to encourage auto makers to produce zero-emission vehicles to improve local air quality and reduce emissions contributing to climate change.

The federal government is also working with provinces, territories, and businesses to develop a zero-emission vehicle strategy and to accelerate the deployment of infrastructure to support zero-emission vehicles (e.g., electric vehicle charging stations).