The Electric Vehicle Availability Standard is being reviewed and the 2026 requirements have been waived
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- Canada has abandoned their requirement that 20% of new vehicles be zero emission by 2026.
- The government is conducting a review of the Electric Vehicle Availability Standard to “reflect market realities.”
- Canada originally wanted to go ZEV-only by 2035, but Trump’s tariffs have changed the game.
Automakers aren’t the only ones walking back their electric vehicle plans as Canadian Prime Minister Mark Carney has decided to give companies additional “flexibility.” As such, he’s waiving 2026 model year vehicles from the Electric Vehicle Availability Standard and will conduct a broader review to “provide additional flexibilities and reduce costs.”
As the prime minister’s office explained, the government wants to make “targeted regulatory adjustments” to ensure automotive companies remain competitive during the transition to electric vehicles. They added the “automotive sector is essential to Canada’s economy, supporting jobs, trade, innovation and the green transition.”
More: Canada Requires All New Cars Sold By 2035 To Be Electrified
The Electric Vehicle Availability Standard originally required at least 20% of new light-duty vehicle sales be zero emission by 2026. However, the rules will be amended to remove that target to reduce “economic pressure due to tariffs.”
On top of that, the government is reviewing other EVAS deadlines to ensure they “reflect market realities” and don’t place an “undue burden on automakers.” As you may recall, 60% of sales are supposed to be zero emission vehicles by 2030, while that number would rise to 100% by 2035.
Despite hitting the brakes on Canada’s electric vehicle push, Carney’s office said zero emission vehicles are “crucial for addressing climate change,” improving health, and creating significant opportunities for the economy. However, the government noted the transition to EVs is “unfolding amid significant short-term economic uncertainty” and “Canada must carefully consider how recent U.S. policy uncertainty could affect the affordability and availability of ZEVs in the integrated North American market.”
Interestingly, the government said they’ll “explore options to bring more affordable electric vehicles to Canadians.” They didn’t go into specifics, but it will be interesting to see if they’ll crack the door open to Chinese brands.
The changes to the Electric Vehicle Availability Standard were revealed as part of a larger announcement that aims to “protect, build, and transform Canadian strategic industries.” Part of this includes a new Buy Canadian Policy for the federal government as well as a Regional Tariff Response Initiative, which aims to help small and medium-sized businesses impacted by U.S. tariffs.
