Ottawa set to scrap EV mandate, launch $1.5 billion investment fund: sources

An electric vehicle is charged in Ottawa on Wednesday, July 13, 2022. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — Prime Minister Mark Carney is expected to announce a national automotive strategy tomorrow, which will scrap the electric vehicle sales mandate in favour of new vehicle emissions standards and revive consumer rebates for EV purchases.

Government and industry sources, who were not authorized to publicly discuss details ahead of the announcement, say Ottawa will also launch a $1.5 billion EV infrastructure fund.

In September, Carney paused the EV mandate — which would have required automakers to ensure a certain percentage of new vehicle sales are electric starting this year — and launched a 60-day review.

The sources said that in place of the EV mandate, the government is expected to introduce average fuel efficiency standards for automakers to help bring in more stringent emissions standards for new vehicles.

The popular incentive program — which was paused last year after its funding pool of more than $3 billion ran out — is also set to return.

The previous Liberal government set a target of having EVs account for at least 20 per cent of sales across Canada this year, a target which would have increased to 100 per cent by 2035.

CBC News first reported some details of the strategy.

This report by The Canadian Press was first published Feb. 4, 2026.

Nick Murray, The Canadian Press