Montréal, November 4, 2025 - Propulsion Québec, the zero-emission transportation cluster, acknowledges the budget presented today by Canada's Minister of Finance and National Revenue, François-Philippe Champagne. The organization recognizes the will to invest in Canadian businesses in order to stimulate productivity and innovation in a turbulent economic and geopolitical context. Propulsion Québec is nonetheless concerned about the lack of predictability associated with the renewal of certain key programs for the electrification of transport.
"Canada must stay the course and pursue its electrification efforts. In a highly unpredictable global context, the constancy of public policies and programs is our best asset for supporting innovation and protecting our jobs. Key programs for the electrification of transportation must be relaunched and maintained; they represent a strategic response to preserve the competitiveness of the Canadian market and support the growth of the industry," asserts Alexis Laprés-Paradis, Acting President and CEO of Propulsion Québec.
Electrification: an irreversible trend in which Canada must play a full part
The electrification of transportation is an irreversible and indisputable global trend. Canada can't just be a spectator: it has the opportunity to play a leading role, capitalizing on its assets and industrial strengths.
Of particular concern is the announcement of the potential end of the incentive program for zero-emission medium and heavy-duty vehicles (iVMLZE) in 2025-2026, which could threaten progress towards decarbonization of transportation, one of the country's biggest GHG emitters. The end of the program would have a major impact on local manufacturers of medium-heavy electric vehicles. Propulsion Québec recommends the extension of this program, as well as the renewal of the incentive program for zero-emission vehicles (iZVE).
Supporting innovation and productivity in times of great uncertainty
Propulsion Québec nonetheless welcomes measures to facilitate access to capital and support innovation, such as the enhancement of the Scientific Research and Experimental Development (SR&ED) program, the reinstatement of the accelerated investment incentive, and the maintenance of tax credits for clean technology investment and manufacturing.
Among the budget announcements that will have a positive impact on the sustainable mobility ecosystem, Propulsion Québec highlights the following :
- The creation of the "Buy Canadian" policy, aimed at selecting Canadian suppliers wherever possible and supporting local innovation;
- 79.9 million over five years to support the new Small and Medium Business Procurement Program;
- 12 billion over five years to support new technologies in AI, quantum computing and electric vehicles;
- 2 billion over five years (from 2026-2027) to Natural Resources Canada for the creation of the Sovereign Wealth Fund for Critical Minerals;
- 585 million over five years to support projects related to critical and strategic minerals ;
- 371.8 million over four years to create the First and Last Mile Fund to support the development of critical minerals projects and supply chains in the upstream and midstream segments of value chains;
- 443 million over five years to support the development of innovative technologies for the processing of critical minerals, partnerships with Canada's allies and the creation of new storage mechanisms to strengthen national security;
- Maintaining investment and manufacturing tax credits for clean technologies;
- Restoring the accelerated investment incentive ;
- Enhancing the SR&ED program and reducing its administrative burden;
- Harmonization with international standards for investments in sustainable development.
