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Carney unveils major EV policy shift, bringing back rebates

Carney unveils major EV policy shift, bringing back rebates

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Prime Minister Mark Carney announced a major overhaul of Canada’s electric-vehicle policy on Thursday, February 5, 2026, unveiling a new automotive strategy that drops the previous government’s EV sales/availability mandate and replaces it with tougher emissions standards for upcoming model years, alongside a renewed consumer incentive program to support EV purchases.

 

According to the Prime Minister’s Office, the announcement was made in Vaughan, Ontario, as Ottawa seeks to shore up an auto sector heavily exposed to trade uncertainty and U.S.-bound exports.

 

Key measures

  • The federal government is scrapping the national EV mandate/standard and moving toward stronger emissions standards for 2027–2032 models, with long-term goals of 75% EV sales by 2035 and 90% by 2040.
  • A new C$2.3B consumer incentive plan was announced, including rebates of up to C$5,000 for certain battery-electric and fuel-cell vehicles (with additional eligibility details reported by Canadian media).
  • Ottawa also set out a C$1.5B investment to expand charging infrastructure.
  • Additional industry support includes allocating C$3B from the Strategic Response Fund to help the auto sector adapt and invest