Government expected to announce scrapping of EV mandate in favor of new fuel efficiency system: Sources
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The federal government is expected to announce its national automotive strategy on Thursday that includes eliminating Canada’s electric vehicle mandate and replacing it with a new system of fuel efficiency standards and credits, CBC News has learned.
Ottawa is also expected to bring back popular electric vehicle incentives for consumers who buy electric vehicles, two sources say.
Funding will also be announced to build more charging stations for EVs across Canada to help consumers, one of the sources said.
Prime Minister Mark Carney is under pressure from auto sector leaders, several provinces and the Conservatives to eliminate incremental sales targets requiring 60 per cent of all new cars by 2030 and 100 per cent electric cars by 2035.
As part of a new funding strategy announced Friday, the federal government announced plans to pause electric vehicle mandates and launch a 60-day review of the Trudeau-era policy. The Prime Minister said that the ongoing trade war has increased the pressure on the auto industry.
In September, Carney paused the 2026 targets and announced a 60-day review of the EV mandate, saying the Canadian auto sector already had “enough on their plate” to deal with U.S. President Donald Trump’s tariffs.
One source said the system replacing the EV mandate would allow manufacturers to earn credits by producing electric vehicles, and would be a way to carry over credits earned under the old electric vehicle mandate.
Industry sources also told CBC News there are indications the government is expected to rescind the mandate. Stakeholders were consulted on reforming Canada’s passenger automobile and light truck greenhouse gas emissions regulations. These rules control how much pollution cars and trucks can emit.
It is unclear when the government will implement the new system, or whether it will achieve similar emissions reductions.
Sources said some type of incentive program for consumers buying EVs is expected to return, but it is unclear whether it will be in the form of discounts as before.
Canada’s incentive program for zero-emission vehicles, known as iZEV, was suspended more than a year ago after it ran out of money due to high demand.
Program offered customers up to $5,000 toward EV purchases
