Government to Replace EV Mandate with New Fuel Efficiency System: Source
The Canadian government is poised to unveil a new automotive strategy that will replace the current electric vehicle (EV) mandate with a revamped fuel efficiency system. This announcement is expected on Thursday, according to sources familiar with the developments.
Key Changes in the Automotive Strategy
Under the new approach, the government plans to eliminate incremental sales targets, which required 60% of all new vehicles to be electric by 2030 and 100% by 2035. This decision comes as Prime Minister Mark Carney faces pressure from various stakeholders, including automotive industry leaders, provincial officials, and members of the Conservative opposition.
Returning Incentives for Electric Vehicles
The government is also anticipated to reinstate popular incentives for consumers purchasing electric vehicles. As part of this initiative, funding will be allocated to expand the network of charging stations across Canada, making it easier for consumers to adopt EVs.
- Previous Mandate: 60% electric vehicles by 2030; 100% by 2035.
- Funding for Charging Stations: New investments will support EV infrastructure.
- Incentives: Possible return of rebates for EV purchases.
Review of the Current Mandate
In keeping with the new strategy, Prime Minister Carney paused the existing electric vehicle mandate and initiated a 60-day review of the policy, citing the challenges posed by the ongoing trade war and existing tariffs affecting the Canadian auto sector.
The revised system aims to allow manufacturers to earn credits for producing electric vehicles and will likely permit the carryover of credits accrued under the previous mandate. Industry sources suggest the timeline for implementing the new regulations remains uncertain, as does the extent of the emission reductions expected from this shift.
Background on the iZEV Program
Previously, the incentive program for zero-emissions vehicles, known as iZEV, was put on hold over a year ago due to a depletion of funds attributed to high demand. This program offered up to $5,000 in financial support for customers purchasing electric vehicles.
As Canada navigates its evolving automotive landscape, the government’s shift in policy highlights the need for balance between consumer incentives, industry capability, and environmental goals.
