VICTORIA — Joanna Kyriazis, director of policy and strategy at Clean Energy Canada, made the following statement in response to the federal government’s newly released automotive strategy.
“Today, the federal government announced a thoughtful EV policy package with the potential to achieve what Clean Energy Canada has long called for: a plan that prioritizes consumer affordability alongside long-term auto industry competitiveness.
“Last year, EVs constituted one in four new cars sold globally. Canada has clearly fallen behind, consumers are missing out, and the future of our auto sector has remained fuzzy. And while the EV Availability Standard was a smartly designed policy solution to these challenges, what ultimately matters most is outcome. Namely, ensuring Canadians get access to a variety of well-priced EV models, that the EV market has a predictable trajectory—which is critical for enabling private sector charging investments—and that emissions from transportation decline on their way to complete decarbonization.
“Taken together, the government’s new policy package is therefore a commendable alternative for achieving these same, essential goals. Made-in-Canada tailpipe emission standards have the potential to improve EV supply and make a meaningful dent in emissions—but only if we get the details right. The European Union is driving transformative EV adoption through strong emissions standards, and despite some dramatic headlines, recently proposed changes to Europe’s standards represent a very modest walkback of their 100% target to 90% by 2035.
“But in Canada, tailpipe standards have not done the job they were supposed to do to date. Since 2011, passenger vehicle emissions have dropped a mere 1%. In fact, our passenger fleet pollutes more today than it did in 1990, as a loophole in our U.S.-aligned standards allows for larger, more polluting vehicles, undermining gains in efficiency and electrification.
“Without the EV Availability Standard, we’ll need to see stringency levels that more closely match the EU than the U.S. (where President Trump just introduced significantly weaker standards that are set to cost Americans US$185 billion in higher fuel use through 2050). The promise to develop these standards so they’re strong enough to deliver 75% EV sales by 2035 and 90% by 2040 is a good sign. We’ll likewise need to close loopholes and stick to the proposed accelerated regulatory development timeline to ensure standards are in place by 2027, avoiding another year of uncertainty.
“Better yet, the federal government should explore a broader Canada-EU auto pact, signaling alignment on emission standards as well as vehicle safety standards—opening Canada to more European EVs—along with a commitment to collaborate on critical minerals and EV manufacturing.
“Encouragingly, the return of federal EV rebates via the new EV Affordability Program brings clarity to Canadians, many of whom waited on the sidelines last year for a government update on the program, causing Canada to become potentially the only country to see EV sales decline in 2025. Canadians want EVs, but upfront cost remains a barrier, at least for now. Incentives, more model options, and controlled competition from Chinese EVs will shift the market in favour of consumers.
“Support for EV charging, meanwhile, including a new $1.5 billion investment through the Canada Infrastructure Bank’s Charging and Refuelling Infrastructure Initiative, will both boost consumer confidence in Canada’s growing charging network and help meet levels of anticipated demand. We encourage governments to carefully consider the needs of Canadians living in apartments as part of this broader strategy.
“Finally, the future of Canada’s auto and critical minerals sectors depends in large part on whether Canada makes itself an essential player in the global EV transition. The federal government is therefore rightly making these policies part of an industrial strategy that re-commits Canada to an EV future.
“Canada attracted $50 billion in EV investments over the last few years and is ranked one of the top countries in the world for battery supply chain potential. Yes, Trump’s tariffs and U-turn on EV policy put the Canadian auto industry at risk. But with today’s package and recent efforts to work with other auto partners still committed to EVs—like our friends in South Korea and Germany—Canada has a much better chance of competing in a changing global car market.
“Canada broke its EV market in 2025. As 2026 kicks off, we’re en route to fixing it.”
