The plan to enforce minimum sales targets for electric vehicles by Prime Minister Mark Carney is being delayed. This decision is part of a set of actions unveiled by the government on Friday to assist sectors impacted by the tariffs imposed by U.S. President Donald Trump. The implementation of the electric vehicle mandate is being put on hold while the government conducts a 60-day review of the policy; exemptions will be granted for 2026 models. Sources have indicated that the review will assess the entire mandate and determine the next steps.
During a news conference in Mississauga, Ont., Carney acknowledged the significant challenges facing the auto sector due to the drastic changes in U.S. policy. As a result, the government is temporarily suspending the mandate to alleviate pressure on the industry. Carney emphasized that the government is using this review as part of a broader evaluation of all climate-related measures.
This move signifies a departure from the climate agenda of Carney’s predecessor, Justin Trudeau, who introduced the electric vehicle availability standard, also known as the zero-emission vehicle (ZEV) mandate. The ZEV mandate establishes increasing targets for light-duty vehicle sales by auto manufacturers and importers, starting at 20% in 2026 and aiming for 100% by 2035.
Automakers have been lobbying the Liberal government to scrap the mandate, citing concerns about its potential negative impact on their businesses and the risk it poses to thousands of jobs. The mandate has faced political opposition, particularly from the Conservatives, who criticized the government’s approach in fundraising emails.
Industry groups, including the Canadian Vehicle Manufacturers’ Association and Global Automakers of Canada, welcomed the delay in the EV mandate. They emphasized the need for a full repeal to alleviate the financial burden on manufacturers and preserve jobs in the sector.
Despite industry support, Greenpeace Canada criticized the delay, questioning the government’s commitment to climate action. Meanwhile, the announcement was deemed a missed opportunity by the Canadian Climate Institute, highlighting the importance of a swift and evidence-based review process.
The government’s review is expected to be comprehensive, with stakeholders urging for a balanced approach that considers both economic and environmental factors. The potential reintroduction of a consumer rebate program for electric vehicles is being considered to make them more accessible to the public.
