RECAP | Canada election: Carney confirms Trump made ‘51st state’ comment during 1st call

Peter Zimonjic, a senior writer at the CBC Parliamentary Bureau, reported that Conservative leader Poilievre has announced his plans to eliminate the zero-emission EV mandate in Canada. This mandate requires that 20% of light duty vehicle sales be zero-emission by 2026, 60% by 2030, and 100% by 2035.

Poilievre raised concerns about the compliance measures associated with the mandate, claiming that companies would be subjected to a $20,000 tax for each EV they fall short of the sales targets. However, it should be noted that there is not an actual tax imposed on automakers for failing to meet sales targets. Instead, there are compliance benchmarks in place.

Companies that do not produce enough EVs will be in a deficit position. To rectify this deficit, they have the option to purchase EV credits from other automakers or invest in charging station infrastructure. For every $20,000 invested in charging station infrastructure, they will receive one credit, which equates to one EV.

The industry has expressed concerns that meeting the mandate deadline is unattainable, leaving them with limited options such as making charging station investments, purchasing credits, or reducing the number of gas-powered vehicles sold until the target is met. Failure to comply with the mandate, which is a legal requirement, could result in court action, injunctions, or prosecution.

It is crucial for automakers to consider their strategies for meeting the zero-emission EV mandate to avoid potential consequences for non-compliance. Stay tuned for further updates on this developing story.