Overview

• Prime Minister Mark Carney removed the 20% zero‑emission sales requirement for 2026 and opened a 60‑day review that could adjust annual targets, including the 2035 goal, and add flexibilities.
• Officials said the pause provides liquidity relief for automakers facing higher costs from U.S. tariffs, with the government seeking ways to reduce compliance costs.
• A broader package includes a $5 billion Strategic Response Fund, a $370 million biofuel production incentive, and procurement measures aimed at bolstering Canadian industry.
• Automaker groups welcomed the pause as pragmatic given market conditions, while Conservative Leader Pierre Poilievre called it a flip‑flop and urged the mandate be scrapped.
• British Columbia signalled potential revisions to its own ZEV rules, as national EV sales softened after federal purchase rebates lapsed, falling to roughly 8% of new sales in June.