Ottawa moves to formally repeal EV mandate, industry welcomes shift

The federal government has taken the formal step to repeal Canada's Electric Vehicle Availability Standard (EVAS), publishing proposed amendments in the Canada Gazette, Part I on August 15 that would remove the mandatory zero‑emission vehicle sales requirements introduced in 2023.

The proposal is subject to a 75‑day consultation period ending October 29. If finalized, the amendments would come into force when the regulations are registered.

The existing standard called for zero‑emission vehicles (ZEVs) to represent at least 20 per cent of model‑year 2026 light‑duty vehicles offered for sale, rising to 60 per cent in 2030 and 100 per cent in 2035 and beyond. Automotive industry groups have argued the targets were unrealistic given consumer demand, affordability concerns, gaps in charging infrastructure, and broader economic pressures facing the sector.

"It's clear from our conversations with senior officials of Environment Canada that the plan will not be coming forward until 2027," said Huw Williams, Public Affairs for the Canadian Automobile Dealers Association (CADA). "We should now have a reprieve for the 2026, 2027 model years and we look forward to working with government to get the formula right."

Williams said one of the most significant elements of the government's announcement is its own Regulatory Impact Analysis Statement explaining the rationale for repealing EVAS.

"That Regulatory Impact Assessment mirrors almost exactly the argument that CADA and the manufacturers have been making to the government," Williams said.

The federal analysis acknowledges that changing market and trade conditions have made compliance with the existing requirements increasingly difficult and could place additional pressure on automakers. It also notes that ZEV sales declined from about 14 per cent of new vehicle sales in 2024 to about nine per cent in 2025. Sales improved somewhat in early 2026, but remained well below the original 20 per cent EVAS requirement.

Williams said the government's findings support arguments CADA has made for more than two years about consumer demand, charging infrastructure, and the potential consequences of trying to force EV adoption ahead of the market. CADA is also continuing discussions with Quebec and British Columbia, which maintain their own ZEV requirements, about moving toward a harmonized national regulatory approach.

Global Automakers of Canada President and CEO Lucas Malinowski also welcomed the federal move. "That's going to be important just from a regulatory and legal certainty for automakers," Malinowski said. He said the industry expects Ottawa to consult further on the replacement greenhouse gas regulations this fall.

Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers' Association, also welcomed the decision, saying in a post on X that repealing EVAS reflects current market realities. "The auto industry is under intense pressure from tariffs," Kingston posted. "Imposing costs on manufacturers through a damaging mandate made a bad situation worse." Kingston said Canada now needs "reasonable, achievable and technology‑agnostic vehicle emissions standards that reduce emissions while preserving consumer choice and industry competitiveness."

Attention will now shift to what replaces EVAS. Ottawa has said it intends to introduce stronger, Canada‑specific greenhouse gas emission standards designed to reduce emissions while allowing manufacturers greater flexibility in the technologies they use. The government says the new framework is intended to put Canada on a path toward 75 per cent EV sales by 2035 and 90 per cent by 2040. Details of those regulations, however, have yet to be finalized, setting up another important round of consultations between Ottawa and the automotive industry.

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