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The government of Canada announced that it will repeal the Electric Vehicle Availability Standard (EVAS), […]]
Canada Drops Zero Emission Vehicle Sales Mandate for Automakers – ESG Today
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Energy Transition/ Government
Canada Drops Zero Emission Vehicle Sales Mandate for Automakers
Mark Segal
February 6, 2026
The government of Canada announced that it will repeal the Electric Vehicle Availability Standard (EVAS), a regulation mandating a minimum and rising share of zero-emission vehicle (ZEV) sales by automakers, which would have required the industry to reach 100% ZEVs by 2035.
Initially launched in 2023, the regulation was designed to help increase supply for consumers over time, and included interim mandated targets, including requiring ZEVs to make up 20% of new vehicle sales by 2026, and 60% by 2030.
The move by Canada forms part of similar pullbacks in other jurisdictions, as consumer demand for EVs has been softer than expected, and automakers have warned about the cost of meeting the ambitious mandates, including the European Commission’s announcement in December that it would remove its requirement for a 100% reduction in CO2 emissions from new cars and vans from 2035.
In place of the EVAS mandate, the government said that it will be “setting the course for the intention of more than doubling the stringency of Canada’s greenhouse gas (GHG) emissions standards by 2035,” which it said it expects to drive a 75% EV adoption rate. Alongside new investments in EV production, purchase incentives for consumers, and charging infrastructure, the government added that it will target an “aspirational goal” to reach a 90% EV adoption rate by 2040.
Citing affordability as a key barrier to EV adoption, the government announced the launch of a new EV affordability program, providing purchase incentives of as much as $5,000 for battery electric and fuel‑cell electric vehicles, and $2,500 for plug-in hybrids, which will decline annually through 2030 to $2,000 and $1,000, respectively.
The government also said that it plans to develop a national charging infrastructure strategy, focused on attracting investment from private equity, reducing barriers to building out charging infrastructure, helping make buildings EV-ready and supporting skills training.
Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.
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