Canada scraps national EV sales mandate and adds purchase and charging incentives

Prime Minister Mark Carney said Canada will scrap a national electric-vehicle sales mandate and will provide C$2.3 billion for purchase incentives and C$1.5 billion for charging, alongside up to C$3.1 billion for the auto-manufacturing transition.

Canadian Prime Minister Mark Carney announced his government is scrapping a national electric-vehicle sales mandate and is boosting incentives for EV purchases and charging. The plan includes C$2.3 billion for purchase incentives and C$1.5 billion for charging infrastructure, plus up to C$3.1 billion to support the auto-manufacturing sector’s transition. Carney said the government will introduce stronger vehicle emissions standards for the 2027–2032 model years. The announcement follows recent regulatory rollbacks in Europe and differs from recent U.S. policy changes. Key points: - Prime Minister Mark Carney announced the government will scrap a national electric-vehicle sales mandate. - The federal government will provide C$2.3 billion to fund incentives of up to C$5,000 on EV purchases or leases for individuals and businesses. - The plan earmarks C$1.5 billion for EV charging infrastructure. - Up to C$3.1 billion is allocated to help Canada’s auto-manufacturing sector transition to electric vehicles. - The government said it will introduce stronger vehicle emissions standards for 2027–2032 and stated targets of 75% EV sales by 2035 and 90% by 2040. - Canada struck an initial trade arrangement with China to allow up to 49,000 Chinese EVs at a 6.1% tariff (rising toward about 70,000 over five years), and Carney said Chinese EVs would not be eligible for government incentives. Summary: Carney presented the measures as a shift from a mandated sales target toward emissions standards and targeted funding for consumers, charging infrastructure and manufacturers. The government said it will release a climate-competitiveness strategy in the coming weeks and plans to implement the stronger vehicle emissions standards for the 2027–2032 model years.