The federal government plans to review the Electric Vehicle Availability Standard in the face of mounting economic and trade pressures

This week Prime Minister Mark Carney unveiled a series of actionable priorities to support sectors of Canada’s economy struggling in the face of U.S. tariffs — including the automotive industry.

Among the long list of issues addressed was the government’s role in encouraging the adoption of electric vehicles and, specifically, a promise that Canadian automakers and dealerships will not be forced to meet the 2026 Electric Vehicle Availability Standard (EVAS).

“We have an auto sector which, because of the massive change in U.S. policy, is under extreme pressure. We recognize that,” said the prime minister, who confirmed he is beginning an immediate 60-day review of the EVAS.

“They’ve got enough on their plate right now, so we’re taking that off.”

The EVAS regulations (originally set by the previous incarnation of the liberal government) state that for 2026, at least 20 per cent of new light-duty vehicle sales in Canada be zero emissions vehicles. Those percentages were slated to rise to 60 per cent by 2030 before finally reaching 100 per cent of all new light-duty vehicle sales by 2035.

According to a government statement, the purpose of the review is to ensure the EVAS framework “continues to reflect market realities, remains effective for Canadians, and does not place undue burden on automakers. The review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities.”

Industry response

Responses to the announced EV policy change were quick to come and range from fully supportive to disappointed.

Ontario mayors representing cities where automotive manufacturing occurs, dubbed “Auto Mayors,” expressed strong support for government’s revised approach to EVs.

“The decision to waive the 2026 model year vehicles from the Electric Vehicle Availability Standard, combined with an immediate 60-day review of the EV Standard is the essential course correction needed to prevent the loss of the Canadian auto industry,” the Auto Mayors wrote in a statement.

The Canadian Automotive Dealer’s Association also came out in favour of the plans and said it would engage with the federal government during the 60-day review period.

“It gives certainty to consumers and the automotive industry for the next year, and will help to avoid a consumer availability and affordability crisis in the short term. The provinces of Quebec and British Columbia should immediately follow this lead to avoid perpetuating internal trade barriers,” the association wrote in a statement.

Meanwhile the Canadian Charging Infrastructure Council (CCIC), which represents the businesses that manage half of the public charging sites in Canada, issued a statement emphasizing the importance of maintaining the EVAS.

CCIC’s president, Travis Allan, wrote, “The EVAS plays a critical role in supporting the multi-year investments in charging infrastructure and utility upgrades needed by future Canadian EV drivers. These investments create sustainable, well-paying jobs in civil and electrical trades across Canada.”

The council urged the federal government to “keep [EVAS] targets ambitious and to provide long-term policy certainty that attracts private investment.”

National industry association, Electric Mobility Canada (EMC), says the way EVAS is currently structured offers sufficient flexibility to accommodate for changed U.S. trade policy and what is needed now is government to throw its support behind EV adoption.

“While Canada is providing the industry temporary relief from regulatory compliance, Electric Mobility Canada urges the government to swiftly confirm a clear path forward,” reads a statement from EMC president and CEO, Daniel Breton.

“The EV Availability Standard remains essential for ensuring predictability and supporting investments across the broader EV ecosystem.”

The Pembina Institute also weighed in on the changes to EV policy. The director of its transportation program, Adam Thorn, shared his thoughts in a statement.

“The federal government’s decision to pause — rather than adjust — the EV Availability Standard leans too heavily toward the concerns of the automotive industry, not the best interest of Canadians. It also unfairly penalizes companies that have already made investments in EV production and infrastructure based on an expectation of clear, consistent policy.” 

Thorn suggests that the government look at other options including: “extending credits for plug-in hybrid vehicle and charging infrastructure, modestly adjusting targets, or re-evaluating tariffs on Chinese-made EVs.”

Next steps

The government’s 60 day review period of EVAS will no doubt include hearing feedback from industry stakeholders as they lobby the government in the hopes of informing the path forward.

“We are using this as an opportunity, as part of a broader strategy on climate competitiveness, to look at all our measures to help get greenhouse gases down in the key sectors,” said Carney.

“We’ll look at the interaction between the EV mandate, our clean fuel standards, our investment tax credits, our trade policy — all of those elements. What this government is focussed on is absolutely results.”

What exactly those “results” are is still unclear, but Carney did pledge that as part of the review, “we’ll advance new options to bring more — and more affordable — electric vehicles to Canadians.”