EV policy repeal puts affordable vehicles further out of reach for Canadians

Repealing the federal EV availability standard limits Canadians' access to affordable EVs and puts Canada's 75% EV sales target out of reach

August 14, 2026
Media Release
Woman plugging an EV into a charger while her family walks through the front door in the background

Photo: iStock/SouthWorks

TORONTO — ADAM THORN, clean growth director at the Pembina Institute, made the following statement in response to the federal government’s decision to repeal the Electric Vehicle Availability Standard while delaying a replacement regulation:  

“The federal government’s decision to repeal the Electric Vehicle Availability Standard (EVAS), and delay a replacement to ensure Canadians have access to an increasing supply of electric vehicles (EVs), is bad news for every Canadian wanting more affordable vehicle options and lower transportation costs.

“Transportation is one of the largest expenses facing households. EVs significantly reduce fuel and maintenance costs over time, but those savings are only available to Canadians if they have access to a wider range of affordable models. A policy that ensures automakers supply more EVs to Canada is critical to expanding consumer choice and bringing lower-cost models to Canadians. Repealing that policy without immediately replacing it slows that progress and means many Canadians will be forced to wait longer for affordable EV options.

“Prime Minister Mark Carney committed to having 75% of new vehicle sales be electric by 2035. Today's decisions removes the only federal regulation designed to help achieve that target while delaying its replacement. It's difficult to see how the Prime Minister expects to meet his own objective without a policy to drive the transition. The government must move to quickly introduce a new vehicle emissions standard (VES) to meet that goal or continue to fall behind the rest of the world.

“Repealing the EVAS without a strong replacement also sends exactly the wrong signal to automakers, investors and charging developers. As global markets accelerate electrification, manufacturers are deciding where to allocate vehicle supply and where to invest in building cars, supply chains and charging stations based in part on the strength and certainty of government policy. Canada should be making it clear that it intends to compete for that investment and give Canadians access to the vehicles being developed for markets around the world, not stepping back from policies that help make that happen.  

“This decision also represents a failure of an early test of the government's commitment to electrification. The federal government has identified electrification as a core pillar of its economic and climate strategy and committed to doubling the supply of domestically generated electricity. Delivering on that ambition hinges upon ensuring that transportation electrifies, which means ensuring that the majority of new vehicles sold are electric.  If electrification is expected to deliver more affordable energy to Canadians and reduce emissions, transportation policy needs to actively drive EV adoption.  Canada can't claim to support electrification while repealing policies needed to deliver it.

“The global auto industry is continuing to electrify. Other countries are competing to attract investment, expand consumer choice and lower transportation costs. Canada can't expect to remain competitive if it steps away from policies that provide certainty to consumers and industry.  

“Canadians should not have to wait for more affordable, healthier vehicles while other countries move ahead and reap the benefits. Our government needs to put a strong policy in place that gives Canadians more choice, supports more affordable EVs and delivers on its commitment to electrification.”

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Contact

Lejla Latifovic

Senior Communications Lead, Pembina Institute

819-639-4185

​​​Background

Backgrounder: Getting the Vehicle Emissions Standard Right

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