Canada delaying plan to force automakers to hit EVs sales targets
Prime Minister Mark Carney has decided to delay a plan that would have required automakers to meet minimum sales levels for electric vehicles. This decision is part of a series of measures announced by the government to support sectors that have been negatively impacted by the tariffs imposed by U.S. President Donald Trump.
The implementation of the EV mandate will be put on hold while the government conducts a 60-day review of the policy. Additionally, the mandate will be waived for 2026 models. Sources have indicated that the review will assess the entire mandate and determine the next steps moving forward.
“We have an auto sector that is facing significant challenges due to the recent changes in U.S. policy. We understand the pressure they are under and want to alleviate some of that burden,” Carney stated during a news conference in Mississauga, Ont. “They have enough on their plate right now, so we are taking this off.”
The government views this review as part of a broader assessment of all climate-related measures currently in place. This delay marks a departure from the climate agenda set by Carney’s predecessor, former Prime Minister Justin Trudeau, who introduced the electric vehicle availability standard, also known as the zero-emission vehicle (ZEV) mandate.
The ZEV mandate sets out escalating sales targets for auto manufacturers and importers, starting at 20% in 2026 and aiming for 100% by 2035. However, automakers have been lobbying for the mandate to be scrapped, citing concerns about its impact on their businesses and potential job losses.
The decision to postpone the EV mandate has been met with approval from industry groups. Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, described it as an important first step. Global Automakers of Canada president David Adams acknowledged the challenges of consumer adoption of electric vehicles and emphasized the need for a transition that aligns with consumer preferences.
However, not everyone is pleased with the delay. Environmental activist group Greenpeace Canada criticized the decision, questioning the government’s commitment to climate action. Rick Smith, president of the Canadian Climate Institute, labeled the announcement as a missed opportunity and stressed the importance of evidence-based decision-making moving forward.
As discussions continue within the Liberal caucus about climate issues, Environment Minister Julie Dabrusin has hinted at the possibility of reintroducing a consumer rebate program to make electric vehicles more affordable. This move could help encourage the adoption of electric vehicles and support the government’s climate goals.
Overall, the decision to delay the EV mandate reflects the government’s efforts to support the auto industry during challenging times while also considering the broader implications for climate policy in Canada.
