Government expected to announce it's scrapping EV mandate in favour of new fuel efficiency system: source | CBC News
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Government expected to announce it's scrapping EV mandate in favour of new fuel efficiency system: source | CBC News
"Prime Minister Mark Carney has been under pressure from leaders in the auto sector, multiple provinces and the Conservatives to scrap the incremental sales targets requiring 60 per cent of all new cars to be electric by 2030 and 100 per cent by 2035. In September, Carney paused the 2026 targets and announced a 60-day review, citing that the Canadian auto sector already had "enough on their plate" dealing with the U.S. President Donald Trump's tariffs."
"A source said the system replacing the EV mandate will allow manufacturers to earn credits by producing electric vehicles and carry over credits earned under the old electric vehicle mandate. Industry sources also tell CBC News there are signs the government is expected to scrap the mandate. Stakeholders were consulted on improving Canada's passenger automobile and light truck greenhouse gas emission regulations."
The federal government plans a national automotive strategy that replaces the electric vehicle sales mandate with fuel-efficiency standards and a credit system. Manufacturers can earn credits by producing electric vehicles and carry over credits earned under the previous mandate. Ottawa is expected to restore popular consumer incentives for EV purchases. Prime Minister Mark Carney paused the 2026 targets and ordered a 60-day review after industry, provincial and Conservative pressure and amid U.S. tariffs. Stakeholders were consulted on passenger automobile and light truck greenhouse gas regulations. The timing and emissions impact of the new system remain unclear.
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