Question Period Note: Electric Vehicle Availability Standard

On Sept. 5, 2025, the Government announced an intent to make targeted regulatory adjustments to help the automotive sector stay competitive during a period of transition. To support the sector as it navigates the immediate challenges from U.S. trade actions while preparing for a zero-emissions future, the Government of Canada will remove the 2026 target from the Electric Vehicle Availability Standard (EVAS) and also launched a 60-day review of the overall regulation. The review will ensure the Standard is effective, achievable, and supports both our climate goals and our auto sector.

• The Government is waiving the regulatory requirements for 2026 model year vehicles under the Electric Vehicle Availability Standard (EVAS).
• A 60-day review of the EVAS is also underway to ensure the standard continues to reflect current market realities, remains effective in getting affordable EV’s to Canadians that want them, and does not place undue burden on automakers.
• The review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities to reduce costs.
If pressed

• In addition to regulatory adjustments, the Government will also explore options to bring more affordable EV models to Canada.
• Up to 1 in 4 vehicles sold in the world today is an electric vehicle. Shifting toward EVs will offer long-term savings for drivers, reduced carbon emissions and improved health from cleaner air. The global shift to electrification is also creating significant opportunities for the Canadian economy, including new manufacturing jobs and expansions in critical minerals mining and processing, which will benefit rural communities.

· The Government announced its intent on September 5 to make targeted regulatory adjustments to help the automotive sector stay competitive during a period of transition. The automotive sector is essential to Canada’s economy, supporting jobs, trade, innovation and the green transition. To support the sector as it navigates the immediate challenges from U.S. trade actions while preparing for a zero-emissions future, the Government of Canada will remove the 2026 target from the Electric Vehicle Availability Standard (EVAS) and is launching a 60-day review of the overall regulation.
· The EVAS currently requires that 20% of new light-duty vehicle sales in Canada be zero emissions by 2026, rising annually to 60% by 2030 and reaching 100% by 2035. The EVAS will be amended to remove the target for the 2026 model year vehicles to help reduce the economic pressure due to tariffs.
· At the same time, the Government is launching an immediate review of the EVAS to ensure it continues to reflect market realities, remains effective for Canadians, and does not place undue burden on automakers. The review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities.
· In addition to regulatory adjustments, the Government will also explore options to bring more affordable electric vehicles to Canadians.
· These changes are part of the Government of Canada’s broader strategy to support key sectors impacted by global trade dynamics, while ensuring a clean and competitive economy for the future.
· The Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations establishes progressively more stringent GHG emission standards for new light-duty vehicles in alignment with the U.S. EPA national standards. Light-duty EV sales continue to rise. Since the introduction of the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations, the volume of EVs reached 13.4% for the 2023 model year and approximately 15.3% in 2024. Despite strong continued global sales growth, some softening in Canadian sales has taken place in 2025, in part due to the pause of Transport Canada’s consumer rebate program. The Government announced the Electric Vehicle Availability Standard in December 2023, requiring all new light-duty cars and passenger truck sales to be zero-emission by 2035. The regulation includes interim targets of 20% by 2026 and 60% by 2030 with flexibility provisions.
· On August 1, 2025, the U.S. published a proposal to rescind the 2009 Endangerment Finding, which underpins a broad spectrum of GHG emissions regulations. If the EPA goes ahead with this, all on-road vehicle GHG emissions rules will be repealed, which represents a set back at least 15 years. Legal challenges are expected, with no clear timeline on when this issue will be resolved.

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