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Canada Abandons EV Mandate for Fuel Efficiency Standards

  //automotive-transportation.news-articles.net/co .. ns-ev-mandate-for-fuel-efficiency-standards.html
  Published in Automotive and Transportation on Wednesday, February 4th 2026 at 22:11 GMT by reuters.com
      Locales: Ontario, CANADA

Ottawa, February 5th, 2026 - In a significant policy reversal, the Canadian government is expected to abandon its ambitious electric vehicle (EV) mandate in favour of a new system centered around fleet-wide fuel efficiency standards, CBC News reported today. The move signals a pragmatic shift away from a strict target for EV adoption and towards a more holistic approach to reducing transportation emissions.

The original mandate, introduced in 2021, aimed for a rapid transition to zero-emission vehicles. It stipulated that 20% of all new vehicles sold must be electric by 2026, increasing to 35% by 2030, and ultimately reaching 100% by 2035. However, mounting concerns regarding the feasibility of achieving these targets - coupled with anxieties about affordability for Canadian consumers - appear to have prompted a re-evaluation of the strategy.

Sources within the government, speaking to CBC News, highlighted a growing recognition that the initial timeline was overly aggressive given the current state of EV infrastructure, supply chain constraints, and consumer demand. While the Liberal government remains committed to combating climate change and fostering a greener transportation sector, the path forward is now seen as requiring more flexibility and a broader scope.

The proposed new system will shift the focus from a prescriptive EV quota to setting average emission targets for each vehicle manufacturer's entire fleet. This means automakers will have greater latitude in how they meet emissions reduction goals. They can continue to invest in EVs, but also pursue improvements in the fuel efficiency of internal combustion engine (ICE) vehicles, explore hybrid technologies, and potentially invest in alternative fuels. This approach acknowledges the ongoing role of ICE vehicles in the Canadian automotive landscape for the foreseeable future.

Industry Response Anticipatedly Positive

The automotive industry is widely expected to welcome the change. For months, automakers have voiced concerns about the challenges of meeting the stringent EV targets, particularly given the limited availability of critical minerals needed for battery production and the relatively underdeveloped charging infrastructure in many parts of Canada. The new fuel efficiency standards offer a more manageable pathway to compliance, allowing companies to leverage existing technologies and gradually transition towards a more sustainable vehicle mix.

"This is a welcome development," commented David Adams, President of the Global Automakers of Canada, in a statement released shortly after the CBC News report. "While we remain dedicated to electrification, a rigid mandate risked stifling innovation and potentially driving up vehicle costs for consumers. A flexible, fleet-wide approach allows us to balance environmental goals with economic realities."

Impact on Consumers and Infrastructure

The policy shift could have several implications for Canadian consumers. While the 100% EV target by 2035 now appears unlikely, the new fuel efficiency standards are still expected to drive innovation and lead to more fuel-efficient vehicles across all segments. This could translate into lower fuel costs for drivers over the long term.

However, the slower pace of EV adoption could also mean a delayed rollout of charging infrastructure. Government investment in charging networks will remain crucial, but the urgency may be lessened without the pressure of the EV mandate. Experts warn that maintaining a consistent pace of infrastructure development is essential to avoid hindering future EV adoption and ensuring equitable access to charging for all Canadians.

A Global Trend?

Canada's potential policy change comes amid a broader global reassessment of EV mandates. Some countries are also tempering their ambitions in light of logistical challenges and economic headwinds. The European Union, for instance, recently delayed a planned ban on the sale of new gasoline and diesel cars. This suggests a growing recognition that a successful transition to electric mobility requires a balanced and adaptable approach.

The Canadian government has yet to officially confirm the reported changes. A formal announcement is expected in the coming weeks, outlining the details of the new fuel efficiency standards and the timeline for implementation. What is clear, however, is that Canada's journey towards a sustainable transportation future is taking an unexpected - and potentially more realistic - turn.