Ottawa proposes repeal of electric-vehicle sales requirements
KCJ Media Group staff
August 18, 2026 at 1:35:35 p.m.

Canadian News
The federal government has proposed repealing national electric-vehicle sales requirements, opening a 75-day period for public comment before a final decision.
The draft regulations were published Saturday in the Canada Gazette. They would remove rules requiring zero-emission vehicles to make up at least 20 per cent of new light-duty vehicle sales for model year 2026, 60 per cent for 2030 and 100 per cent from 2035 onward.
The amendment is not yet in force. It would take effect only after the federal government completes its regulatory process and registers a final version.
The federal impact analysis links the proposal to pressure on the auto industry, including United States tariffs, changing market conditions and uncertainty about vehicle supply.
Ottawa says it still plans to develop Canadian greenhouse-gas standards that would support electric vehicles reaching 75 per cent of new sales by 2035 and 90 per cent by 2040. Those future standards are not included in the current proposal and have not yet been set out as final requirements.
The analysis says zero-emission vehicles accounted for about 14 per cent of new light-duty vehicle sales in 2024, then fell to about nine per cent in 2025.
Federal analysts estimated the repeal would let consumers avoid $57.6 billion in added vehicle and home-charging costs between 2026 and 2050. They also estimated consumers would give up $53.8 billion in fuel savings, along with maintenance savings that were not assigned a dollar value.
The same analysis estimated the repeal would result in 326 million tonnes of greenhouse-gas reductions no longer occurring over that period. It valued the related potential global climate damage at $94.2 billion and estimated a net cost of $90.3 billion.
Those figures do not include the effect of the future greenhouse-gas standards described by the government.
That means the analysis does not represent the complete impact of federal vehicle policy that may follow.
The proposal has particular relevance in Alberta, where many households, farms and businesses travel long distances and have limited access to public charging. It also affects electricity planning, fuel demand and vehicle choices.
The Alberta government welcomed the proposed repeal Monday. Premier Danielle Smith and Environment Minister Grant Hunter said the existing requirements reduced consumer choice and posed affordability and grid concerns, particularly in rural areas.
Canada's auto sector contributed about $16.8 billion to national gross domestic product in 2024, according to the federal analysis. It supported about 125,000 direct jobs and roughly 500,000 jobs across the broader economy.
People and organizations can submit comments on the proposed amendment for 75 days from its publication in the Canada Gazette. A formal notice of objection requesting a board of review can be filed within 60 days.
The government will consider submissions before deciding whether to register final regulations and when they would take effect.









