The Canadian Government’s ZEV targets are on hold as the Carney government considers how to best move forward.
Yesterday, the Prime Minister announced a sweeping set of measures to help bolster the Canadian economy amid tariffs and general economic uncertainty in the global market.
For the automotive sector, the focus was on the Electric Vehicle Availability Standard (EVAS), better known as the ZEV mandate.
The EVAS had legislated that all new light-duty vehicle sales would need to move toward zero-emission, starting with 20% of sales in 2026. This rose to 60% by 2030 and 100% in 2035.
However, after meetings with the Big Three automakers and a rather public campaign, the Carney government has decided to put a pause on the ZEV mandate and take the time to evaluate the program that was put in place under the previous Liberal Government.
As of yesterday, the 2026 target has been removed, and the EVAS will undergo a 60-day review to ensure the program reflects market realities, remains effective for Canadians, and does not put an undue burden on North American automakers.
Per the Government of Canada press release, the review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities.
One of the big questions left unanswered is whether this review is going to look at removing tariffs on Chinese EVs and opening up the Canadian EV market to the likes of BYD, NIO or Zeekr, but this line from the press release does pique our interest:
In addition to regulatory adjustments, the Government will also explore options to bring more affordable electric vehicles to Canadians.
There was also no mention of the return of the iZEV rebate, although the government has previously committed to bringing in back in some form.
