An influential environmental think tank is urging the Canadian federal government to maintain its electric vehicle mandate, cautioning against a repeal and instead advocating for policies that enhance EV affordability and accessibility. Clean Energy Canada, based out of Simon Fraser University, recently issued three key recommendations aimed at accelerating the adoption of electric vehicles (EVs) priced under $40,000 for Canadian consumers.

This plea follows recent meetings between auto manufacturing leaders and Prime Minister Mark Carney, where industry executives reiterated their calls for the federal mandate's repeal. Starting next year, the mandate requires 20 percent of all new light-duty vehicles sold in Canada to be zero-emission vehicles, including plug-in hybrids, with targets escalating annually to reach 100 percent by 2035. Recent data from Statistics Canada indicates that EVs constituted 7.53 percent of all new vehicles sold in April, highlighting the significant gap to meet initial targets.

Clean Energy Canada's primary recommendation involves retooling the existing EV mandate. The group suggests revisiting near-term targets to provide the auto sector with flexibility to navigate current market conditions, characterized by a slump in EV sales. "Any additional flexibility added in the regulation should be designed to achieve other EV-related goals, such as delivering more affordable EVs and building out Canada’s charging network," stated Rachel Doran, Executive Director, and Joanna Kyriazis, Director of Public Affairs, in their joint statement.

Furthermore, the organization called for the immediate re-funding of the Incentives for Zero-Emission Vehicles (IZEV) program, which was abruptly suspended in January when its funding was exhausted, leaving many dealerships financially exposed. Clean Energy Canada proposes a clear, declining phase-out schedule for the rebate, suggesting it start at $5,000 and decrease by $1,000 annually. This structured approach aims to provide predictability for both consumers and automakers, preventing artificial market slowdowns as buyers await rebate clarity.

Lastly, Clean Energy Canada urged the federal government to reconsider its approach to cheaper Chinese-made EVs, which are currently subject to a 100 percent tariff implemented last October. The group advocates for allowing a limited quota of these affordable vehicles into the Canadian market, alongside recognizing EU-approved models. This strategy, they argue, would address significant market gaps, foster innovation, and ultimately enhance the competitiveness of Canada's domestic auto sector. The federal government is scheduled to review the tariff measure later this year, a decision that could significantly impact EV market dynamics and consumer choice.