Canada expected to scrap EV mandate in favor of new fuel efficiency system, CBC News reports

The Canadian federal government is expected to announce its national ⁠automotive strategy on Thursday, replacing the country's electric vehicle mandate with new fuel efficiency standards and credits, CBC News reported ‌on Wednesday.

Ottawa is ‌also expected to bring back popular incentives for consumers purchasing electric ‌vehicles, the report said, citing sources.

The office of Canada's prime minister and a spokesperson for the industry minister did not immediately respond to Reuters' requests for comment.


Two auto maker lobbyists told Reuters on the condition of anonymity that they expect ‌Canada ‍to scrap its EV mandate in favor ‍of emissions standards that still require a ‌significant number of EVs by 2035.

Prime Minister Mark Carney has been under pressure from leaders in the auto sector and multiple provinces to scrap the incremental sales targets requiring 60% of all new cars to be electric by 2030 ‍and 100% by 2035, according to the report.

The new system replacing the ‍EV mandate ⁠will allow manufacturers ⁠to earn credits for producing electric vehicles, and let them carry over credits earned under the old mandate structure, the report said.

Since coming into office, U.S. President Donald Trump has also reversed many of his predecessors' electric vehicle policies.