Fed To Delay and Review EV Sales Mandate

Sep 5, 2025 - 2 hours ago

The Government is announcing an intent to make targeted regulatory adjustments to help the automotive sector stay competitive during a period of transition.

Prime Minister Mark Carney announced on September 5, 2025 that the Electric Vehicle Availability Standard (EVAS) will be reviewed, pausing the 2026 target.

The automotive sector is essential to Canada’s economy, supporting jobs, trade, innovation and the green transition. To support the sector as it navigates the immediate challenges from U.S. trade actions while preparing for a zero-emissions future, the Government of Canada will remove the 2026 target from the Electric Vehicle Availability Standard (EVAS) and is launching a 60-day review of the overall regulation.

The EVAS currently requires that at least 20% of new light-duty vehicle sales in Canada be zero emissions by 2026, rising to 60% by 2030 and reaching 100% by 2035. The EVAS will be amended to remove the target for the 2026 model year vehicles to help reduce the economic pressure due to tariffs.

At the same time, the Government is launching an immediate review of the EVAS to ensure it continues to reflect market realities, remains effective for Canadians, and does not place undue burden on automakers. The review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities.

Increasingly, countries around the world are transitioning to Zero Emissions Vehicles (ZEV), including electric vehicles. Up to 1 in 4 vehicles sold in the world today is an electric vehicle. Shifting toward ZEVs (including electric vehicles) will offer long-term savings for drivers, reduced carbon emissions and improved health outcomes and reduced health care costs by ensuring cleaner air for communities. The global shift to electrification is also creating significant opportunities for the Canadian economy, including new manufacturing jobs and expansions in Canada’s critical minerals mining and processing, which will benefit rural communities.

While the transition to zero emission vehicles is crucial for addressing climate change, it is unfolding amid significant short-term economic uncertainty. Since these regulations were introduced, U.S. tariffs have had a major impact on the auto industry. Additionally, Canada must carefully consider how recent U.S. policy uncertainty could affect the affordability and availability of ZEVs in the integrated North American market. That’s why we are taking a measured approach – supporting our industries today, while keeping a clear focus on a sustainable future.

In addition to regulatory adjustments, the Government will also explore options to bring more affordable electric vehicles to Canadians.

These changes are part of the Government of Canada’s broader strategy to support key sectors impacted by global trade dynamics, while ensuring a clean and competitive economy for the future.

Source: Government of Canada