Prime Minister Mark Carney has decided to postpone the implementation of a requirement for automobile manufacturers to achieve specific sales targets for electric vehicles. This decision is part of a set of actions announced by the government to support industries impacted by the tariffs imposed by U.S. President Donald Trump.
The enforcement of the electric vehicle mandate will be put on hold while the government conducts a 60-day evaluation of the policy. The mandate will not be enforced for 2026 vehicle models. Sources revealed that the review will assess the entire mandate and determine the next course of action.
During a press conference in Mississauga, Ontario, Carney acknowledged the challenges faced by the automotive sector due to the significant shifts in U.S. policies. He emphasized that the sector is currently burdened and, therefore, the government is relieving them of this specific obligation.
The temporary suspension of the mandate marks a departure from the climate agenda set by Carney’s predecessor, former Prime Minister Justin Trudeau, who introduced the zero-emission vehicle (ZEV) mandate. This mandate establishes increasing sales targets for light-duty vehicles, starting at 20% in 2026 and aiming for 100% by 2035.
Automakers have been lobbying the government to eliminate the mandate, arguing that it could harm their businesses and jeopardize numerous jobs. Political pressure against the mandate has also been mounting, particularly from the Conservative party, which criticized the Liberals for their approach to electric vehicles.
Industry groups, including the Canadian Vehicle Manufacturers’ Association and Global Automakers of Canada, welcomed the government’s decision to pause the electric vehicle mandate. They highlighted the challenges faced by manufacturers in meeting the mandate and the importance of aligning with consumer preferences for electric vehicles.
However, Greenpeace Canada criticized the delay in implementing the electric vehicle mandate, emphasizing the need for stronger climate policies in line with global trends towards renewable energy and electric vehicles.
The government’s review process has been met with mixed reactions, with some expressing concerns about the potential impact on climate policies and industry investments. The announcement of the mandate delay has sparked discussions within the government caucus about the direction of climate initiatives under Carney’s leadership.
As the U.S. ZEV market faces changes due to policy shifts, Canada is considering reintroducing a consumer rebate program to promote the adoption of electric vehicles. This program aims to make electric vehicles more affordable for consumers and support the transition to cleaner transportation options.