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Ottawa set to scrap EV mandate, launch $1.5 billion investment fund: Report

The federal government will replace the EV sales mandate with average fuel-efficiency standards and invest $1.5 billion in EV infrastructure, reviving consumer rebates.

  • On Thursday, Prime Minister Mark Carney will unveil a national automotive strategy scrapping the Electric Vehicle Availability Standard — zero-emissions vehicle mandate and launching a $1.5 billion EV infrastructure fund.
  • After Mr. Carney paused the mandate last September, automakers and industry groups lobbied against the ZEV mandate, citing weak demand and limited charging, while concerns grew over credit trading subsidizing Chinese-made EVs.
  • Government officials say average fuel-efficiency and tailpipe emissions standards will replace the sales quota, consumer EV purchase rebates paused last year will return with a $5,000 rebate cap, and duty remissions may be considered as a manufacturing incentive.
  • Automakers welcomed the change as Brian Kingston said the repeal provides `immediate relief` to an industry under `extreme pressure` from U.S. tariffs, though uncertainty about tailpipe emissions standards and investment goals remains.
  • CBC News first reported the plan that the previous Liberal government targeted at least 20 per cent of vehicle sales as EVs this year amid wider coverage citing unnamed sources.
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Carney scraps Canada EV sales mandate, affirms auto sector's future is electric

Prime Minister Mark Carney on Thursday canceled a mandate for all vehicles sold in Canada to be electric by 2035, while announcing major investments to support the auto industry's EV transition.

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+18 Reposted by 18 other sources
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Feds expected to announce national automotive strategy, new EV rebates today

Lean Left

Ottawa would announce on Thursday the return of the electric vehicle rebate program, suspended last year.

·Montreal, Canada
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Winnipeg Free Press broke the news in Winnipeg, Canada on Wednesday, February 4, 2026.
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