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The federal government is expected to announce its national automotive strategy on Thursday that includes scrapping Canada’s electric vehicle mandate and replacing it with a new system of fuel efficiency standards and credits, CBC News has learned.
Sources also say Ottawa is expected to bring back popular incentives for consumers purchasing EVs.
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. These rules regulate how much pollution cars and trucks can emit.
It’s not clear when the government will put the new system in place, or if it will achieve the same emission reductions.