The federal government is preparing to abandon the Electric Vehicle Availability Standard, which was set to impose increasing zero-emission vehicle (ZEV) thresholds on automakers starting with the 2026 model-year.
Draft regulations published on August 15 in Part I of the Canada Gazette provide for the repeal of the ZEV requirements. Note that this is currently a proposed regulatory change and not yet a done deal.
Under the current regulations, ZEVs must account for at least 20 percent of new light-duty vehicles offered for sale in Canada for the 2026 model-year. This proportion was set to rise to 60 percent in 2030, then to 100 percent as of 2035.
A changed automotive landscape
Ottawa justifies the change of direction in part by the evolution of the North American market since the requirements were adopted in 2023. The government highlights the end of the federal iZEV program, declining U.S. support for electric vehicles and trade tensions affecting the auto industry.
According to Statistics Canada data cited in the document, ZEV sales in Canada fell from about 14 percent of new vehicle sales in 2024 to around 9 percent in 2025, The government considers that maintaining mandatory thresholds could increase pressure on manufacturers in a context where consumer demand and commercial conditions remain uncertain.
“Repealing the Zero-Emission Vehicle Requirements would provide Canadian manufacturers and importers [...] with greater flexibility,” reads the federal document.
New targets, but no mandatory quotas
The federal government insists it’s not abandoning its electrification goals. Instead, it plans to develop new Canadian greenhouse gas emissions standards, described as technology-neutral.
The announced strategy now aims to place Canada on a trajectory where electric vehicles would represent 75 percent of sales in 2035 and 90 percent in 2040. These percentages would serve as targets rather than the mandatory thresholds imposed by the current standard.
According to the regulatory impact analysis, the repeal is expected to lead to fewer ZEV sales than under the current regulations. Ottawa also estimates that it would result in a net loss of GHG emissions reductions of 326 megatonnes between 2026 and 2050.
The new regulations would come into force on the date they are officially registered.