Electric vehicle policy: Carney reinstates buyer incentives, scraps sales mandate

Prime Minister Mark Carney announced reinstated incentives for electric-vehicle buyers and formally ended the previous EV sales mandate, while also proposing new tailpipe emissions rules and investments in a national charging network.

Prime Minister Mark Carney unveiled a new federal plan to support Canada’s auto sector and reduce greenhouse gas emissions. The plan restores incentives for people who buy electric vehicles and removes a prior sales mandate. It also includes new tailpipe emissions rules and planned investments in a country-wide EV charging network. The announcement came amid ongoing trade tensions after U.S. tariffs were applied last year. Key details: - The government announced incentives to buy electric vehicles and new regulations addressing tailpipe emissions. - Mr. Carney officially scrapped the EV sales mandate introduced by the previous government, which had set targets of 20% by 2026, 60% by 2030 and 100% by 2035 for battery, fuel-cell or plug-in hybrid models. - The announcement was made at a Martinrea International Inc. auto parts factory in Vaughan, Ontario. - Ottawa said it will invest in a nationwide EV charging network as part of the plan. - The government will maintain its tariff remissions program for U.S.-made cars and Mr. Carney said he aims to remove auto tariffs in the upcoming USMCA trade discussions. Summary: The policy shifts federal strategy from a sales-quota approach toward consumer incentives, emissions regulation and infrastructure investment. Trade measures and tariff discussions are part of the strategy mentioned by the prime minister. Undetermined at this time.