TORONTO, ON — ADAM THORN, director of Clean Growth at the Pembina Institute, made the following statement in response to the federal government's national automotive strategy announcement.
“A comprehensive federal electric vehicle (EV) strategy is a strong and welcome signal that Canada is committed to electrification and competing in the global clean transportation economy. The strategy sets a clear long-term direction for the market, including targets to reach 75% EV sales by 2035 and 90% by 2040, alongside new measures to strengthen EV affordability and expand charging infrastructure. Canadians will benefit from a new EV Affordability Program offering incentives of up to $5,000 for eligible EVs, making EVs more accessible while supporting a stronger domestic market. By limiting incentives for higher-priced vehicles, the program directs support where it will have the greatest impact, helping more Canadians access EVs. Importantly, the strategy includes protections for Canadian workers and a pathway to diversify and strengthen Canada’s auto sector.
“Canada’s objective should be clear: electrification of passenger vehicles. The federal government has indicated it will rely on stronger greenhouse gas emissions standards to replace the Electric Vehicle Availability Standard (EVAS); those regulations must be strong, predictable and implemented with urgency — meaning stringent standards, a clear path to 2035 and implementation by end of 2026 — to provide the same level of certainty for industry and consumers. The EVAS, introduced in 2023, was designed to create a reliable domestic market for EVs, giving companies the confidence to invest in production and supply chains. Replacing an existing policy risks unnecessary delays and inefficiencies in achieving both customer choice and emissions reductions.
“The new framework will include a vehicle emissions standard of 74 grams of CO2e per mile by 2035. This should be seen as a minimum baseline of ambition and is a positive starting point. However, we urge government to move toward more ambitious standards, in line with leading jurisdictions such as Europe, to remain competitive and aligned with the global market.
“Until new regulations are finalized and in force, Canada will have no policy meaningfully driving down vehicle emissions, and any delay locks in emissions for years to come.
“Canada’s auto sector has faced significant production declines over the past decade. Aligning policy with global EV demand is essential because strong and predictable policy sends a clear market signal that allows the country to position itself as a reliable place to build vehicles, batteries and supply chains, supporting jobs in manufacturing and critical minerals processing.
“The global transition to EVs continues to speed ahead. More than a quarter of all vehicles sold globally in 2025 were electric; in China, more than half. Countries that move early to build domestic markets and supply chains will be the most competitive in the growing clean economy. Canada should be among them.”
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Contact
Lejla Latifovic
Senior Communications Lead
Pembina Institute
819-639-4185
Background
Blog: Diversified EV sector best way to protect Canadian workers
Op-ed: Canada needs a strong EV market to secure future jobs
Op-ed: Who’s killing Canada’s EV dreams? It’s not just Trump and his tariffs
Submission: Electric Vehicle Availability Standard
