Particle.news
Download on the App Store

Canada Scales Back EV Sales Mandate, Targets 75% by 2035 and 90% by 2040

Trade pressure from U.S. tariffs pushed Ottawa to replace hard quotas with emissions standards plus purchase incentives.

Overview

  • Prime Minister Mark Carney ended the 100%-by-2035 requirement and set new goals of 75% EV share by 2035 and 90% by 2040, positioning the shift as a pragmatic reset.
  • Officials cited a 25% U.S. tariff on non‑U.S. parts used in Canada‑made vehicles since April 2025 and the sector’s U.S. reliance—over 90% of vehicles and 60% of parts exported—as key vulnerabilities.
  • Ottawa will tighten fleet greenhouse‑gas limits for model years 2027–2032 and move from sales quotas to tradable compliance credits to let automakers choose their technology mix.
  • A five‑year, C$2.3 billion program will provide up to C$5,000 for battery‑electric purchases and C$2,500 for plug‑in hybrids, with a sub‑C$50,000 price cap and sourcing rules tied to free‑trade partners; domestically built models are exempt from the price cap.
  • The package includes C$1.5 billion to expand charging networks, while automakers remain skeptical given infrastructure gaps and the industry’s 500,000 Canadian jobs at stake.