Prime Minister Mark Carney has announced that Canada’s electric vehicle sales mandate will be delayed by at least one year, pausing a flagship climate policy introduced under former prime minister Justin Trudeau. The mandate, which was to begin in 2026, required that 20 per cent of new vehicles sold in Canada be electric or plug-in hybrids, rising steadily until 2035, when all new light-duty vehicles were to be zero-emission.
Speaking at a press conference in Mississauga, Carney said the government is suspending the 2026 requirement and launching a 60-day review to examine how the targets can be adjusted to lower costs and allow for more flexibility. He argued that automakers, already under strain from U.S. tariffs and global trade uncertainty, “have enough on their plate right now.”
Industry groups had been lobbying for months for relief, and Friday’s announcement was welcomed by both global and domestic manufacturers. David Adams, president of the Global Automakers of Canada, said the pause gives Ottawa time to reassess consumer demand, while Brian Kingston of the Canadian Vehicle Manufacturers’ Association called the decision “an important first step” but insisted the mandate should be scrapped entirely. He warned that even if EV rebates return, it would take “at least $1 billion a year” in subsidies to meet the 20 per cent sales target.
The EV market in Canada has shown sharp regional divides. While British Columbia and Quebec exceeded 20 per cent of new vehicle sales last year, other provinces lagged far behind, with most under 10 per cent. Nationally, EV sales reached nearly 15 per cent of new registrations in 2024, but have since dipped following the expiry of federal rebates.
Carney promised to find ways to make EVs more affordable but stopped short of pledging to lift Canada’s 100 per cent tariff on cheaper Chinese electric vehicles, imposed in coordination with the United States. Conservatives, meanwhile, have attacked both the mandate and any suggestion of loosening tariffs. Opposition leader Pierre Poilievre warned that Chinese-made cars could be used as “roving surveillance operations” on Canadian streets.
Environmental groups, however, blasted the government for weakening a core part of Canada’s climate plan. Greenpeace strategist Keith Stewart accused Carney of retreating from global climate leadership, saying, “What was the point of electing Mark Carney when we get Pierre Poilievre’s climate policy?”
Carney insisted his government remains committed to cutting emissions, calling climate action a “moral obligation.” But he emphasized the need for a strategy that balances environmental goals with industrial competitiveness, declaring in French that Ottawa will “focus on results” while keeping industrial carbon pricing intact.
The review of the EV mandate will determine whether Canada maintains its 2035 zero-emission vehicle target, adjusts the timeline, or builds in new flexibilities to ease pressure on automakers and consumers alike.