EV sales mandate repealed as Carney shifts to purchase rebates in Canada

Prime Minister Mark Carney announced the repeal of Canada's electric-vehicle sales mandate and introduced a new strategy that includes up to $5,000 in EV purchase rebates starting in 2026 and tougher greenhouse‑gas standards for 2027–2032.

Prime Minister Mark Carney announced the repeal of Canada's electric-vehicle sales mandate and set out a new national automotive strategy. The plan replaces the mandate with strengthened greenhouse‑gas standards for vehicle models 2027–2032 while giving automakers flexibility on how to meet them. Ottawa also unveiled a purchase and lease incentive program and funding for charging and grid capacity. Officials presented the measures at an event in the Greater Toronto Area. Key points: - The government will repeal the EV sales mandate and introduce tighter GHG emissions standards for vehicle models 2027–2032, according to officials. - A $2.3‑billion program will offer up to $5,000 in incentives for electric vehicles and up to $2,500 for plug‑in hybrids in 2026; those maximum rebates are scheduled to decrease each year through 2030, and eligibility rules include a price cap and country‑of‑manufacture criteria. - Ottawa announced funding intended to expand EV charging and strengthen electricity capacity, and officials said a new electricity strategy will be released in the coming weeks. - The government said its new system was modelled on grams‑per‑mile measures and expects about 75 per cent of new cars sold to be electric by 2035; officials said exact emissions reductions have not been precisely calculated. Summary: The federal government is shifting from a sales mandate to a mix of emissions standards, purchase incentives and infrastructure funding intended to support the auto sector and encourage lower‑emission vehicles. Key implementation steps include the launch of the incentive program in 2026 and the forthcoming electricity strategy; the precise environmental outcomes have not yet been fully quantified.