Overview

• Prime Minister Mark Carney suspended enforcement of the 20% EV sales target for the 2026 model year and ordered a two-month review of the Electric Vehicle Availability Standard.
• The review will consider changes to annual targets, potential flexibilities up to the 2035 objective, and options to bring more affordable electric models to Canada.
• Statistics Canada reported 46,366 ZEV registrations in Q2, down 29.5% year over year, with the slowdown linked largely to expired or reduced purchase rebates.
• Carney and senior ministers declined to commit to meeting the 2030 Paris emissions goal, signaling an updated plan is coming while reaffirming the 2050 net-zero target.
• Stakeholders split on the pause, with concerns about slowed charging investment and automaker commitment, while some researchers say a brief reset could work if long-term goals and cheaper EV supply are secured.