TORONTO — Greater access to electric vehicles (EVs) gives Canadians more options to reduce their exposure to volatile gasoline prices and lower their driving costs. EVs cost less to fuel than gasoline vehicles, and electricity prices are far less exposed to the volatility that drives changes in gasoline prices.
After years of policy changes and uncertainty, Canadians are still waiting for a clear federal policy to expand access to EVs. As the federal government prepares to consult on a new vehicle emissions standard (VES) this fall, new analysis from the Pembina Institute finds that automakers can meet strong pollution targets, giving the government an opportunity to use vehicle policy to help address affordability while putting Canada on track for its 75% EV sales goal.
Is the Auto Industry on Track finds that automakers can cut emissions by 2030 through a combination of higher EV sales and more efficient vehicles. This gives the federal government room to set a strong vehicle emissions standard that drives meaningful change in the market and accelerates EV availability, rather than setting a bar that automakers can meet through business as usual. A meaningful standard would put Canada on a stronger path toward its goal of 75% EV sales by 2035 while providing automakers with flexibility in how they meet it.
For consumers, stronger vehicle pollution standards can help address affordability by giving automakers a clear signal to bring more EVs to Canada, increasing the range of models and price points available to consumers. Models already available in other markets are not always offered to Canadian buyers. A stronger VES can help close that gap, giving Canadians more options to choose an EV that fits their needs and budget.
Prime Minister Carney repealed the Electric Vehicle Availability Standard (EVAS) earlier this year and plans to replace it with an updated VES in 2027. While he has said the new standard will put Canada on track for 75% EV sales by 2035, Canadians are still waiting for the policy that will make that goal possible.
The cost of delaying this transition is significant for Canadians. The federal government’s own analysis of repealing EVAS estimated that it leaves Canadians paying $53.8 billion more for fuel, while lost emissions reductions could result in $94.2 billion in potential global climate damages.
The federal government is undertaking consultations this fall. We can all use this opportunity to remind our government representatives that Canadians deserve greater vehicle choice, more affordable options, lower and more predictable driving costs and cleaner air. A VES designed to reach 75% EV sales by 2035 can deliver on that affordability while providing automakers the flexibility they need.
Quotes
“The federal government has gone back and forth on vehicle policy while Canadians wait for more choice and more affordable options. Too often, the needs of automakers have taken priority over the needs of Canadians. The evidence shows automakers can meet a stronger standard. There is no reason for the government to set a low bar that does little to change the market.”
— Adam Thorn, Director, Clean Growth, Pembina Institute
“Automakers have several ways to meet a stronger emissions standard, and the market is moving in that direction anyway. The federal government has an opportunity to set a standard that accelerates that progress, rather than falling behind. That can mean more EV models and more price points for Canadians, along with lower and more predictable driving costs.”
— Chandan Bhardwaj, Senior Analyst, Pembina Institute
Quick facts
- The federal government has committed to 75% EV sales by 2035.
- Reaching that goal will require a strong VES that encourages automakers to offer more EVs and lower cost options in Canada. Canadians only have a handful of EVs below $40,000, despite more affordable options available in other countries.
- EVs help Canadians lower and stabilize their driving costs – gasoline prices were 22.8% higher year over year in August 2026.
Read the Pembina Institute analysis on how automakers can meet a standard in line with Canada’s 75% EV vehicle sales goal.
Contact
Lejla Latifovic
Senior Communications Lead, Pembina Institute
819-639-4185
Background
Report: Is the Auto Industry on Track?
Report: Getting the Vehicle Emissions Standard Right
Media release: EV policy repeal puts affordable vehicles further out of reach for Canadians
Op-ed: Canadians Deserve Affordable EVs. Why Are We Paying More Than the Rest of the World?
