Environment group warns against repealing federal electric vehicle mandate

An electric vehicle charger is seen in Ottawa on June 27, 2023. THE CANADIAN PRESS/Justin Tang

OTTAWA — An environmental think tank is warning the federal government against repealing its electric vehicle mandate, instead suggesting that politicians should be helping to put more EVs on the road.

In a statement published Friday, Clean Energy Canada gave three recommendations to the federal government to help deliver affordable EVs to Canadians for less than $40,000.

The group, based out of Simon Fraser University in British Columbia, said Ottawa should retool its EV mandate by revisiting its near-term targets to help the auto sector “weather this temporary storm” of slumping EV sales.

“Any additional flexibility added in the regulation should be designed to achieve other EV-related goals, such as delivering more affordable EVs and building out Canada’s charging network,” says the statement by executive director Rachel Doran and director of public affairs Joanna Kyriazis.

The plea comes on the heels of auto manufacturing leaders meeting with Prime Minister Mark Carney last week, in which the CEOs repeated their calls for the mandate to be repealed.

Starting next year, the mandate would require 20 per cent of all new light-duty vehicles sold in Canada to be zero-emission vehicles. Those also include plug-in hybrid electric vehicles. The target rises annually to 100 per cent by 2035.

Recent data from Statistics Canada suggests EVs accounted for 7.53 per cent of all new vehicles sold in April.

Following the meeting, the head of an organization representing Ford Canada, GM Canada and Stellantis said he was “cautiously optimistic” the government would take action on the mandate.

Clean Energy Canada also called on Ottawa to re-fund the EV incentive program, but to be clearer as to when the program will be phased out.

The government launched the Incentives for Zero-Emission Vehicles program in 2019, which gave car buyers up to $5,000 toward the cost of an electric vehicle. The program was abruptly suspended back in January when its funding ran out.

It has left many dealerships on the hook for the rebate if they hadn’t already sent in their claim before the program ended. The federal government put nearly $3 billion into the program during its lifespan.

“The rebate should start at $5,000 and decline by $1,000 each year, providing consumers and automakers with a well-communicated phaseout that avoids periods of artificially lowered EV sales as buyers await the return of rebates or at least clarity,” Clean Energy Canada says.

A similar policy is in place in Quebec.

Federal ministers have said in recent months that the government was working toward bringing back consumer incentives on EVs.

Those promises faced criticism from automakers themselves because, without implementing a rebate, EV sales are slumping further, as buyers wait for the rebates to come back.

Clean Energy Canada also called on the federal government to reconsider its approach to cheaper EVs from China, which are subject to a 100 per cent tariff which took effect in October. Ottawa is scheduled to review the measure later this year.

“Allowing in a limited quota of these affordable vehicles while also recognizing EU-approved vehicles would open Canada’s vehicle market to fill important market gaps, drive innovation and ultimately make our auto sector more competitive,” the group says.

This report by The Canadian Press was first published July 6, 2025.