Home / Business and Economy / Canada Scraps EV Mandate, Boosts Incentives
Canada Scraps EV Mandate, Boosts Incentives
6 Feb
Summary
- Canada replaces EV sales mandate with stronger emissions standards.
- New incentives offer C$2.3 billion for EV purchases and leases.
- Canada earmarks C$1.5 billion for EV charging infrastructure development.
Canada is abandoning its national electric-vehicle sales mandate, opting instead for enhanced incentives and stricter emissions standards. Prime Minister Mark Carney announced on Wednesday that the government will allocate C$2.3 billion for individual and business EV purchase or lease incentives, with up to C$5,000 available per vehicle.
An additional C$1.5 billion has been dedicated to expanding the EV charging network. The government also plans to provide up to C$3.1 billion to support the domestic auto manufacturing sector in its transition to electric vehicles, emphasizing a focus on results and reduced industry burdens.
This policy adjustment follows a similar move by the European Commission to ease combustion-engine car phase-out rules due to slower consumer adoption. Canada aims for 75% EV sales by 2035 and 90% by 2040 through its updated strategy, which replaces a 2026 mandate requiring 20% emissions-free vehicle sales.
