The national automotive strategy, set to be revealed by the federal government on Thursday, will involve replacing Canada’s electric vehicle mandate with a new system of fuel efficiency standards and credits, as per information obtained by CBC News. Prime Minister Mark Carney, facing pressure from various sectors including the auto industry, provinces, and the Conservatives, is expected to eliminate the requirement for 60% of new cars to be electric by 2030 and 100% by 2035. In a move similar to the European Union’s decision last year, the government plans to shift towards fuel efficiency standards and away from sales targets for electric vehicles. Under the previous electric vehicle mandate, manufacturers could earn credits for producing electric vehicles, and the new system is expected to offer similar credit incentives. The exact timeline for implementing the new system and its potential impact on emissions reduction remains unclear.
Former environment minister Steven Guilbeault expressed willingness to consider changes to the electric vehicle mandate but emphasized the importance of maintaining such regulations for environmental and health benefits. The government is also expected to reintroduce incentives for consumers purchasing electric vehicles, with reports suggesting rebates up to $5,000 for vehicles priced at $50,000 or less. Additionally, funding for expanding EV charging infrastructure across Canada is anticipated.
Industry and policy experts have expressed mixed reactions to the upcoming changes. While some, like Brian Kingston of the Canadian Vehicle Manufacturers’ Association, view the elimination of the mandate as reducing unnecessary costs, others, such as Joanna Kyriazis from Clean Energy Canada, have concerns about the effectiveness of the new efficiency standards. Flavio Volpe of the Automotive Parts Manufacturers’ Association is eager to see if the strategy will support automakers investing in Canada amid challenges posed by tariffs and market pressures.
Cabinet ministers have hinted at the impending auto strategy without confirming specific details, acknowledging the challenges faced by the auto sector due to external factors like tariffs. The shift away from the EV mandate is part of a broader trend under Carney’s leadership, which has seen a rollback of certain environmental policies from the previous administration. The latest decision to scrap the electric vehicle mandate follows earlier changes in environmental regulations made by the current government.