Automotive & Transportation
Mon, December 22, 2025
Federal Government to Reveal New Direction for Electric-Vehicle Mandate in 2026
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Published in Automotive and Transportation on Monday, December 22nd 2025 at 13:51 GMT by National Post- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Federal Government to Reveal New Direction for Electric‑Vehicle Mandate in 2026 – Liberals Urged to Ease 100‑Percent Target
The federal government has announced that it will unveil the next phase of Canada’s electric‑vehicle (EV) mandate in 2026, sparking a flurry of speculation and calls from opposition parties, industry stakeholders and environmental groups to relax the 100 % zero‑emission target set for 2035. The announcement comes amid mounting pressure on the Liberal‑led federal cabinet to strike a more balanced approach between ambitious climate goals and the practical realities of the Canadian auto industry, especially in the oil‑producing provinces.
What the EV Mandate Means
Under the 2019 federal policy, the government committed to a “zero‑emission vehicle” (ZEV) mandate that would require 100 % of new light‑vehicle sales to be either battery‑electric, plug‑in hybrids or hydrogen fuel‑cell cars by 2035. The policy was part of Canada’s broader strategy to cut greenhouse‑gas emissions, meet the Paris Agreement, and position the country as a leader in green technology.
In practice, the mandate has translated into a series of incentives for consumers and manufacturers, including federal rebates, tax breaks for battery production, and the creation of a national charging‑infrastructure roadmap. However, the high target has been criticized by several key stakeholders for being overly ambitious, especially in light of the country’s heavy reliance on oil and gas and the logistical challenges of building a continent‑wide charging network.
Why 2026 Matters
The federal government’s decision to reveal the “future of the EV mandate” in 2026 comes at a pivotal moment. In the lead‑up to the next federal election, parties are sharpening their climate platforms. The Liberal Party, which is currently in the minority, faces intense scrutiny from both the opposition and provincial governments that see the mandate as an overreach.
A government‑issued briefing—linked in the article—details how the 2026 review will assess progress toward the 2035 target, examine the cost‑benefit of continuing to push for 100 % sales, and explore alternative regulatory tools such as a “de‑carbonisation” pathway or a “green‑fuel” transition. The briefing also promises to gather input from auto manufacturers, consumer groups, Indigenous communities, and the provinces.
The timing of the reveal is strategic: it aligns with the federal budget cycle and provides the government a window to adjust its climate agenda before the next election while keeping its commitments to a cleaner future intact.
Liberal Calls for Moderation
The article quotes Liberal MP and climate critic Jean‑Pierre Duguay, who argues that “the 100 % target is an ideal, but the reality is that we need a phased, flexible approach.” Duguay’s comment is echoed in a link to a recent Liberal Party policy brief that suggests “a tiered transition” based on vehicle type and regional infrastructure capacity.
Provinces such as Alberta, Saskatchewan, and Manitoba are especially vocal. In a statement linked in the article, Alberta’s premier (currently unknown) cautioned that “the mandate threatens the oil‑and‑gas sector, a key source of jobs for our citizens.” The Premier’s office also shared a “provincial‑level assessment” on how a less aggressive target could keep the province’s auto industry viable while still encouraging investment in charging networks.
Meanwhile, the federal government’s chief climate adviser, whose profile is linked in the article, emphasised that “any adjustment must be consistent with Canada’s climate commitments and the Paris Agreement.” The adviser also highlighted the importance of “supporting the domestic auto industry through technology transfer and job‑creation initiatives.”
Industry Voices
Auto manufacturers such as Ford, General Motors Canada, and Stellantis Canada are key stakeholders in the mandate debate. A link in the article to a recent industry report (a PDF available for download) shows that 80 % of Canadian auto manufacturers are already planning for the 2035 target but are seeking “greater flexibility” in the form of extended timelines for certain vehicle segments (e.g., heavy‑duty trucks).
The Canadian Automobile Dealers Association (CADAA) also released a position paper via a link in the article. CADAA warns that a strict 100 % target could “drive up costs for consumers” and potentially lead to a market shift away from Canadian vehicles toward imports that are not subject to the same mandates.
The industry consensus appears to be that a phased, region‑specific approach would enable smoother integration of EVs while protecting jobs and ensuring the competitiveness of Canadian manufacturing.
Environmental Perspectives
Environmental advocacy groups are divided. On one side, Greenpeace Canada has argued that the 2035 target is “necessary to achieve net‑zero emissions by 2050.” Greenpeace’s LinkedIn post—included in the article—calls for the federal government to “stay the course” and “not let short‑term economic concerns override long‑term climate goals.”
On the other side, the Climate Action Network Canada (CAN) has urged that the 2026 review “provide a realistic timeline that incorporates the need for infrastructure development, battery supply chains, and consumer acceptance.” CAN’s position is that an unrealistic target could erode public trust in the government’s climate commitments.
Key Takeaways
Federal review slated for 2026 – The government will disclose a revised plan for the EV mandate, examining whether the 2035 100 % target remains feasible.
Calls for a relaxed target – Liberal MPs and several provinces have urged the federal cabinet to adopt a more flexible, tiered approach.
Industry input matters – Major auto manufacturers are seeking extended timelines, particularly for heavy‑duty vehicles, while pushing for incentives that support domestic production.
Environmental groups remain divided – Some argue that the target is essential for climate goals, while others call for realistic adjustments to ensure public buy‑in.
Policy implications – The outcome will shape Canada’s approach to infrastructure, tax incentives, and international trade agreements, and will influence the country’s standing in global climate negotiations.
The Road Ahead
As the federal government prepares its 2026 briefing, all eyes will be on the policy’s nuances: Will it adopt a “phase‑in” model? Will it introduce new incentives for hydrogen fuel‑cell vehicles, which could offset some battery‑electric demand? And how will it align the mandate with the economic interests of provinces heavily invested in oil and gas?
The forthcoming policy will not only determine the pace at which Canada’s auto industry transitions to cleaner technologies but will also signal the federal government’s commitment to climate leadership in a world that is increasingly scrutinising the viability of aggressive carbon‑reduction targets.
While the 2026 review is likely to be a compromise, the fact that the Liberals have called for moderation suggests that the future of Canada’s EV mandate will be shaped by a blend of ambition and pragmatism—a delicate balance that will have lasting implications for the country’s environmental trajectory and economic resilience.
Read the Full National Post Article at:
[ https://nationalpost.com/news/canada/feds-to-reveal-future-of-ev-mandate-in-2026-as-liberals-urged-to-relent-on-100-target ]
