Docs Category: Executive Summary & Introduction

View Categories

Executive Summary & Introduction

2 Docs

Executive Summary

Last Updated: October 7, 2025

Transportation is the second-largest source of greenhouse gas (GHG) emissions in Canada after the oil and gas industry.1 Reducing these emissions is critical to tackle climate change and reach the Government of Canada’s target of net zero by 2050. This means transitioning from gas-powered vehicles to zero-emission vehicles (ZEVs), such as electric vehicles (EVs). In 2023, Canada took a huge step forward when the Zero Emission Vehicle Regulations (ZEV Regs) became law. The ZEV Regs implement a “sales mandate”, requiring that a certain percentage of new light-duty vehicles sold in Canada are ZEVs, starting in 2026. And Canadians continue to support the ZEV Regs: a poll released on 30 September 2025 showed that 66% want to keep some version of a sales mandate in place.2 ZEV sales are taking off in Canada, representing 13.8% of new cars sold in 2024. This number is much higher in provinces that offer rebates on ZEVs: 30.1% in Quebec and 20.7% in B.C. and the territories.3 The federal government offered a rebate too, but the popular program was suspended in January 2025 when it ran out of funds. Despite this strong consumer demand for ZEVs, automakers are determined to stop the federal sales mandates before they even begin in 2026. They say they can’t sell enough ZEVs due to the adverse effects of the United States’ tariffs on the Canadian auto industry. In response, the Government recently set a one-year pause on enforcing the 2026 ZEV sales targets and began a 60-day review of the ZEV Regs. What Can We Do? The automakers are lobbying hard. We need to make sure the Government hears from the rest of us during its 60-day review of the ZEV Regs. ↖️ You can use the information in this toolkit (click on the Table of Contents to the left) to provide well-informed feedback to the Government of Canada. Email your comments to infovehiculeetmoteur-vehicleandengineinfo@ec.gc.ca by October 15. We respectfully suggest that you ask the Government to: 1 Government of Canada, “Greenhouse gas emissions: drivers and impacts”. Retrieved on 20 September 2025 from: https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/greenhouse-gas-emissions-drivers-impacts.html. 2 Emma Jarratt, “Most Canadians want an EV mandate — and better prices: poll”, Electric Autonomy Canada, 30 September 2025. Retrieved on 30 September 2025 from: https://electricautonomy.ca/policy-regulations/2025-09-30/abacus-ev-mandate-clean-energy-canada/. 3 Statistics Canada, “In 2024, one in seven new vehicles sold in Canada were zero emission”. Retrieved on 20 September 2025 from: https://www.statcan.gc.ca/o1/en/plus/7915-2024-one-seven-new-vehicles-sold-canada-were-zero-emission.

Introduction

Last Updated: October 4, 2025

The Zero Emission Vehicle Regulations, formally known as the “Regulations Amending the Passenger Automobile and Light Greenhouse Gas Emission Regulations”1 and referred to throughout this Toolkit as the “ZEV Regs,” became law on 20 December 2023.2 They define a “zero-emission vehicle” as “an automobile that is an electric vehicle, a plug-in hybrid electric vehicle or a fuel cell vehicle.”3 In other words, ZEVs do not emit climate change-causing GHGs, unlike traditional gas-powered vehicles. The ZEV Regs require that 20% of an automaker’s new car sales be ZEVs in 2026, with the percentage increasing each year, to 60% in 2030, until in 2035 all new light vehicle sales must be ZEVs.4 The system of annually-increasing sales quotas is called the “Electric Vehicle Availability Standard” (EVAS). Table of Annual Sales Quotas set out in the ZEV Regs5 Year SalesQuota 2025 0% 2026 20% 2027 23% 2028 34% 2029 43% 2030 60% 2031 74% 2032 83% 2033 94% 2034 97% 2035 100% On 5 September 2025, Prime Minister Mark Carney announced that the EVAS will be amended to remove the target for the 2026 model year vehicles. He stated that the reason for doing so was “to help reduce the economic pressure due to tariffs.”6 At the same time, he launched a 60-day review of the EVAS “to ensure it continues to reflect market realities, remains effective for Canadians, and does not place undue burden on automakers. The review will consider potential amendments to the annual sales targets, including the 2035 goal, and will explore possible additional flexibilities.”7 The cancellation of the 2026 sales quota and the review of the ZEV Regs/EVAS stem from the enormous lobbying effort by the automakers.8 The automakers want to have the ZEV Regs removed entirely or, if they cannot achieve that, they want to have the EVAS made as lenient as possible.9 It is vital that climate concerned citizens like ourselves learn more about the ZEV Regs, including how they can be improved. Using the information in this toolkit, we can provide well-informed feedback to the Government of Canada during its 60-day review of these measures by emailing our comments to the Transportation Division’s inbox at infovehiculeetmoteur-vehicleandengineinfo@ec.gc.ca by 15 October 2025. (The 60-day review period ends on 4 November 2025, but it appears that Prime Minister Carney wants to receive the results of the review at the close of the 60-day period, so we must submit our comments in time for them to be considered.) This Toolkit is divided into three sections: ✉️ Make Your Submission! 1Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations (SOR/2010-201). Retrieved on 13 September 2025 from https://laws-lois.justice.gc.ca/eng/regulations/sor-2010-201/index.html 2Canada Gazette Part II, Vol.157, No. 26, p. 3969. 20 December 2024. Retrieved on 14 September 2025 from https://gazette.gc.ca/rp-pr/publications-eng.html#a2 3ZEV Regs, section 1. 4ZEV Regs, section 30.12. 5ZEV Regs, section 30.12. 6Statement posted to the Prime Minister of Canada’s website, 5 September 2025. Retrieved on 14 September 2025 from https://www.pm.gc.ca/en/news/backgrounders/2025/09/05/prime-minister-carney-launches-new-measures-protect-build-and 7Statement posted to the Prime Minister of Canada’s website, 5 September 2025. Retrieved on 14 September 2025 from https://www.pm.gc.ca/en/news/backgrounders/2025/09/05/prime-minister-carney-launches-new-measures-protect-build-and 8See the discussion of the automakers’ lobbying in the section entitled “The Automakers Will Not Transition to ZEVs Unless They Are Forced to Do So”, below. 9“Ottawa pauses ZEV mandates: will review program,” Newsline: The National Voice of the Automobile Dealer, 8 September 2025. Retrieved on 16 September 2025 from https://www.cada.ca/CADA/News1/Newsline_Stories/2025-09-Sep/zev-vze.aspx