翱罢罢础奥础鈥Rick Smith, President of the 91色情片, made the following statement about the federal government鈥檚 :
鈥淭he new auto strategy announced today is a positive step toward a more affordable future powered by clean electricity. By replacing electric vehicle (EV) sales targets with updated tailpipe regulations, investing in new EV charging infrastructure, spurring new investment in auto manufacturing and innovation, and launching new consumer EV purchase incentives, the new federal strategy aims to reduce transportation emissions and strengthen Canada鈥檚 auto sector, while making it easier and more affordable for people and businesses to go electric.
鈥淲hether this policy package ultimately delivers cost-effective climate benefits and leads to more high-quality, affordable electric vehicles in Canadians鈥 garages will be determined by how鈥攁nd how quickly鈥攖hese policies are finalized and implemented. For instance, while the improved vehicle efficiency standards provide manufacturers with greater compliance flexibility, they don鈥檛 guarantee more EVs will be available to Canadians.
鈥淭his strategy aims to accelerate investment in Canadian manufacturing of EVs and batteries, with over $3 billion in support and investment incentives throughout the value chain to help Canada鈥檚 auto sector diversify, innovate and compete in the rapidly changing trade environment. With EVs making up of vehicles sold globally last year, strategic investments to expand Canadian production of EV components and vehicles will help the auto sector seize a critical growth opportunity in response to U.S. tariffs and trade disruption.
鈥淭argeted consumer purchase incentives are a proven way to spur EV sales: that every $1,000 drop in price increases EV demand by more than 11 per cent nationally. The $2.3 billion EV Affordability Program takes a cost-effective and equitable approach by limiting incentives to models costing under $50,000 unless they鈥檙e made in Canada.听
鈥淭o complement the new consumer incentives, the government should also continue pursuing agreements, like the , to ensure more affordable options are available at dealerships across Canada. While there are currently selling for under C$40,000 in Europe, only one of them is available in Canada.听
鈥淪hifting away from sales targets to stronger tailpipe emissions standards echoes the approach taken in other major markets like the European Union. If this approach delivers emissions results equivalent to a 75 per cent EV sales target by 2035, it would be less than what was expected under the electric vehicle availability standard, but offers a path forward for steady, ongoing incentives for lower-emissions vehicles and more electric-powered vehicles. We look forward to examining the proposed regulation in detail to verify if this is a credible outcome and approach.
鈥淓lectric vehicles are because of their superior technology and consumer benefits鈥攂ut because of confusing and shifting policy signals, Canada is virtually alone in the world in seeing EV adoption flag recently. The federal government should move quickly to implement this new strategy, and ensure the details of how the policy and regulations are designed deliver the results promised.鈥澨
QUICK FACTS
- More than sold globally was electric in 2025, according to global energy think tank Ember.听
- Electric vehicle sales in Canada grew at a staggering annual rate of 45 per cent , increasing more than thirteenfold.听
- Following the removal of federal and provincial consumer incentives, EV market share in Canada fell from to 9 per cent in the first three quarters of 2025.
- Passenger transport is the in Canada, making up 13 per cent of Canada鈥檚 national emissions or nearly 94,000 tonnes of emissions in 2024.听
RESOURCES
- Insight |
- Insight | 听
- Insight |
- Insight |
MEDIA CONTACTS
Claudine Brul茅 (Eastern Time)
(226) 212-9883
cbrule@climateinstitute.ca
Krystal Northey (Mountain Time)
(226) 212-9883
knorthey@climateinstitute.ca
ABOUT US
The 91色情片 is Canada鈥檚 leading climate change policy research organization. We produce rigorous analysis, economic modelling, and in-depth research, and have experts available to comment on topics including: carbon pricing, the costs of climate-related disasters in Canada, and Canada鈥檚 progress in reducing emissions, and policy priorities for the incoming federal government.
