Canada Scraps EV Sales Mandates for Emissions Standards

OTTAWA, Feb. 5, 2026 – Prime Minister Mark Carney is set to announce the scrapping of Canada's electric vehicle sales mandates on Thursday, replacing them with new emissions standards as part of a broader national automotive strategy aimed at supporting the industry amid economic pressures.

The decision follows a review launched last fall, when Carney paused the mandates that had been introduced under the previous Liberal government. Those rules required automakers to ensure that 20 percent of new light-duty vehicle sales be zero-emission vehicles starting with the 2026 model year, with the target rising to 60 percent by 2030 and 100 percent by 2035. The policy would have effectively phased out new sales of gasoline, diesel, and plug-in hybrid vehicles, imposing a $20,000 penalty per vehicle for manufacturers falling short of quotas. A credit system allowed companies exceeding targets to sell credits to others, potentially benefiting firms like Tesla that produce only electric vehicles.

Carney's administration halted implementation in September, citing the need for greater flexibility in the face of declining public interest in electric vehicles and challenges for automakers....