Ottawa's Own Math Says Repealing the EV Mandate Costs Canadians $90.3 Billion

The Carney government's own regulatory analysis puts a $90.3 billion net cost on repealing Canada's Electric Vehicle Availability Standard. The figure comes from the Canada Gazette notice dated August 15, which calculates that Canadian drivers will spend an extra $53.8 billion in fuel costs while climate-change-induced damages rise by $94.2 billion, against $57.6 billion in savings on EV purchase prices between 2026 and 2050.

The notice, first reported by The Energy Mix, formalizes the repeal of the EVAS — the standard that required EVs to make up at least 20 percent of new-car sales this year and 100 percent by 2035 — while delaying the stricter tailpipe-emission rules that were supposed to replace it.

Where the numbers come from

The government's cost-benefit analysis nets out to: $57.6 billion saved on vehicle purchases, minus $53.8 billion in extra fuel spending, minus $94.2 billion in global climate damages absorbed largely outside Canada — producing the $90.3 billion total net cost of the rollback. The document offers limited detail on how the purchase-savings side was computed, projecting battery-electric cars still costing more than combustion vehicles in 2030, and plug-in hybrids and small electric trucks remaining pricier through 2035. That projection sits against International Energy Agency analysis seeing EV price parity in Europe and North America between 2025 and 2030.

Notably, the analysis acknowledges it did not factor in EVs' lower maintenance costs — the notice concedes electric cars "have fewer moving parts," need no oil changes or tune-ups, and skip spark plugs and engine air filters.

What was repealed, and what replaces it

The repeal traces to February, when the government's automotive strategy dropped the sales mandate in favour of tighter tailpipe rules plus purchase rebates, targeting 75 percent EV sales by 2035 and 90 percent by 2040. The catch revealed in August: the tailpipe standard itself is now delayed, with officials citing business uncertainty and the competitive pressures of the U.S. trade war. The Canadian Climate Institute and the Pembina Institute both warn the delay puts the 75-by-2035 target out of reach.

For Canadian buyers, nothing changes overnight — the mandate's removal mainly affects which models automakers ship here and how hard they push rebates. The federal EV Affordability Program and provincial incentives in Quebec and BC continue.

The bottom line

A government publishing a $90.3 billion net-cost figure attached to its own deregulation is unusual, and it hands ammunition to both sides: critics of the repeal get an official price tag, while the government argues the $57.6 billion in sticker-price relief outweighs fuel costs for Canadian households specifically. What the number does settle is that the debate is now about who pays and when — not whether the rollback has a cost.

Looking for EV deals, insurance, or financing? Check out our partner deals and offers.

If you found this guide helpful, use our Tesla referral link for free Supercharging credits on a new Tesla purchase or lease in Canada.