The federal government has finalized its new electric-vehicle availability standard in a move that will have a sweeping effect on commercial real estate.

The standard, announced Tuesday by Environment Minister Steven Guilbeault, means that all new cars, SUVs, crossovers and light-duty trucks must be zero-emission vehicles by 2035. Ottawa will phase in the new rules and require EVs to account for 20% and 60% of all new auto sales by 2026 and 2030, respectively.

The federal policy could impact future EV and electric-battery manufacturing plant developments, charging-station projects, component production facilities and related supply-chain properties, such as warehouses and dealerships. Existing conventional vehicle and parts plants are also likely to be affected as investors decide whether to redevelop or repurpose their properties.

The standard comes after Ottawa committed to invest $1.2 billion to build 84,500 new EV chargers by 2029. The feds are also investing billions in new private-sector-led EV battery plants in Southern Ontario.

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