The Federal Government Announces Pause and Review of EV Sales Mandate

September 15, 2025

As part of Prime Minister, Mark Carney’s recently announced measures to “protect, build, and transform Canadian strategic industries” in response to the impacts of US tariffs, the federal government will not require automakers to meet the 2026 Electric Vehicles Availability Standard (EVAS).

Under the EVAS auto manufacturers and importers must meet annual zero-emission vehicle (ZEV) regulated sales targets. The targets were set to begin for the 2026 model year, with a requirement that at least 20 percent of new light-duty vehicles offered for sale in that year be ZEVs. The requirements would increase annually to 60 percent by 2030 and 100 percent for 2035.

“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,” said the Prime Minister’s release.

“The review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities.”

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

Pembina Institute’s Adam Thorn told CBC’s Power & Politics that Canada risks falling behind other countries around the world, according to IEA, he said in Europe 20% of cars sold are EVs and in China 50% of cars sold are EVs. “Policies in these and other countries are making it easier for consumers to access these vehicles, which is exactly what the availability standard was designed to do for Canadian consumers.”

Although automakers are facing challenges, he said, pausing instead of adjusting the standard sends the wrong message.

“I think the early targets of this regulation are really important. It’s the earlier targets that drive investment to bring the cost of EVs down. That’s going to be very difficult to make up later.”

Thorn said that clear, defined targets are important midst the types of challenges we are facing, in part to help incentivize EV charging infrastructure.

“[The EV Availability Standard] creates a clear signal for those who are investing in EV charging infrastructure or those that have to plan for EV charging infrastructure, to know what the uptake of those vehicles will be. Unfortunately, pausing this makes that even more difficult.”

“While automakers are facing serious challenges due to U.S. tariffs, the government could have maintained the overall purpose of the regulation by adjusting existing compliance flexibilities to provide automakers some much-needed breathing room,” Thorn said in a separate statement.

“Options include extending credits for plug-in hybrid vehicle and charging infrastructure, modestly adjusting targets, or reevaluating tariffs on Chinese-made EVs, steps that support the industry without undermining Canada’s EV commitments. We welcome the opportunity to participate in the upcoming consultation period and will recommend changes that increase flexibility while maintaining the regulation’s stringency.

Pausing, rather than adjusting, the standard undermines the certainty businesses need to invest in charging stations, grid upgrades, batteries, supply chains and workforce training. It also unfairly penalizes companies that have already made investments in EV production and infrastructure based on an expectation of clear, consistent policy.”

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