Ottawa considers reviving EV incentives as it finalizes its auto strategy: sources

Canada's motivator programme for zero-emissions vehicles, known as iZEV, was suspended sir thomas more than a yr agone after it ran out of money due to high demand. 

The program offered customers up to $5,000 toward an EV purchase.

Despite Environment Minister Julie Dabrusin last year suggesting a renewed consumer rebate was in the works, the first budget under Prime Minister Mark Carney made no mention of EV rebates and didn't explicitly renew funding for the program. 

A senior Canadian official last month said the auto strategy would also detail the government's approach to the paused EV sales mandate, EV infrastructure and investments from countries including South Korea, Germany and China.

The official spoke to journalists after Carney's visit to Beijing, where the prime minister agreed to lower tariffs on up to 49,000 Chinese EVs coming into Canada each year. In return, China agreed to drop or lower tariffs on certain Canadian agricultural products.

The auto strategy is expected to be released this month.

Carney is under growing pressure from multiple provinces, industry leaders and the Conservatives to scrap the incremental sales targets requiring 60 per cent of all new cars to be electric by 2030 and 100 per cent by 2035.

The EV sales mandate was meant to ensure a range of zero-emission vehicles are available to consumers.

In September, Carney paused the 2026 targets and announced a 60-day review citing that the Canadian auto sector was already under "extreme pressure" and had "enough on their plate" dealing with the U.S. President Donald Trump's tariffs. 

Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association, has argued that it's impossible for all new cars sold in Canada to be electric in the next decade with the current level of government support. 

Chinese car companies could set up Canadian manufacturing: Carney

Kingston has called for the government to drop the EV mandate, arguing that it duplicates tailpipe emissions regulations.

The European Union unveiled its proposal in December to scrap its plan to ban the sale of new combustion-engine cars in a decade after pressure from big automakers. 

No decision has been made yet, the sources said.

The regulations offer automakers flexibility to comply — including improving engine efficiency, selling more EVs or buying credits from outperformers. 

Unlike the sales mandate, it doesn't guarantee that Canadians will have access to EVs.

Sources said the government is separately trying to address a barrier to some Canadians buying EVs: the fear they won't make it to their destination because there aren't enough charging stations.

The federal government is looking at partnerships to build more charging stations ahead of any boost in demand, sources said. 

Ottawa is considering whether improvements to the charging station network, sources said, could be referred to Canada's new Major Projects Office to speed up construction. 

Industry stakeholders also said that Ottawa has been receptive about bringing back EV charging station funding through the Zero Emission Vehicle Infrastructure Program.

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