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The federal government is expected to announce its national automotive strategy on Thursday that includes scrapping Canada’s electric vehicle mandate and replacing it with a new system of fuel efficiency standards and credits, CBC News has learned.
Two sources say Ottawa is also expected to bring back popular electric vehicle incentives for consumers purchasing electric vehicles.
Money will also be announced to build more charging stations for EVs across Canada to help consumers, a source said.
Prime Minister Mark Carney has been under pressure from leaders in the auto sector, multiple provinces and the Conservatives to scrap the incremental sales targets requiring 60 per cent of all new cars to be electric by 2030 and 100 per cent by 2035.
As part of a new funding strategy announced Friday, the federal government announced plans to pause the electric vehicle mandate and launch a 60-day review of the Trudeau-era policy. The prime minister said the ongoing trade war has increased pressure on the auto industry.
In September, Carney paused the 2026 targets and announced a 60-day review of the EV mandate, citing that the Canadian auto sector already had “enough on their plate” dealing with the U.S. President Donald Trump’s tariffs.
A source said the system replacing the EV mandate will allow manufacturers to earn credits by producing electric vehicles, and that there will be a way to carry over credits earned under the old electric vehicle mandate.
Industry sources also tell CBC News there are signs the government is expected to scrap the mandate. Stakeholders were consulted on improving Canada’s passenger automobile and light truck greenhouse gas emission regulations. These rules regulate how much pollution cars and trucks can emit.
It’s not clear when the government will put the new system in place, or if it will achieve the same emission reductions.
Sources said some sort of incentive program for consumers buying EVs is expected to return, but it’s unclear if it will be in the form of rebates like in the past.
Canada’s incentive program for zero-emissions vehicles, known as iZEV, was suspended more than a year ago after it ran out of money due to high demand.
The program offered customers up to $5,000 toward an EV purchase
