What happened: On Friday, the federal government announced that Canada’s minimum EV sales mandate requirement for car companies would be put on hold as the government undertakes a 60-day review of the policy, as part of its plan to address tariffs.
- While the short-term policy of 20% of vehicle sales next year being zero emission is paused, the long-term goals of 60% by 2030 and 100% by 2035 remain, pending the review.
- Zero-emission vehicle sales as a percent of total new vehicle sales were 11% in 2023 and were around 11.7% in 2024.
What it means: For better or worse, depending on your standpoint, Carney is leaving his mark on the government, as he continues to end many Trudeau-era climate and environmental policies. In the era of tariffs, Carney is betting that cost-of-living and employment policies are more important to Canadians than climate issues.
Looking ahead: It’s not just the EV mandate that is facing headwinds — Industry Minister Melanie Joly did not say whether the government’s 2030 and 2035 emissions targets would change. But one policy not on the chopping block, according to the Prime Minister, is the industrial price on carbon.—GS