Canada is set to overhaul its electric vehicle (EV) rules as part of a forthcoming national automotive strategy, reported CBC News, citing sources.
The federal government is expected to drop its current EV sales mandate and introduce a system based on fuel efficiency standards and tradable credits.
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The existing policy requires that 60% of all new vehicles sold by 2030 to be electric, rising to 100% by 2035.
Canadian Prime Minister Mark Carney has faced pressure from automotive executives, several provinces and the Conservatives to abandon the targets.
In September, he paused the 2026 benchmarks and launched a 60-day review.
Industry figures told CBC News that consultations had been under way on changes to Canada’s passenger automobile and light truck greenhouse gas emission regulations, commonly known as tailpipe emission rules.
Those sources said Ottawa opted for that route rather than maintaining a sales mandate.
The proposed approach would reflect a policy shift made by the European Union last year, when it moved from EV sales targets to fuel efficiency standards.
Under the former framework, manufacturers were able to earn and trade credits for producing electric vehicles.
One source told CBC News the replacement regime would still allow credits for EV output and would include provisions to carry forward those accumulated under the current system.
The timing of the changes and their potential impact on emission reductions remain uncertain.
Sources cited by the news outlet also indicated that a consumer incentive programme for EV purchases is likely to restart.
Canada’s zero-emission vehicle rebate scheme, known as iZEV, was suspended more than a year ago after funds were exhausted amid strong demand.
Additional funding is also expected to be announced to expand the national EV charging network.
All of the measures are due to be set out in the government’s upcoming national automotive strategy, according to the sources.
