Carney scraps Canada EV sales mandate, but earmarks funds to aid transition

Canadian Prime Minister Mark Carney announced on Thursday the decision to scrap a mandate requiring all vehicles sold in Canada to be electric by 2035. This move represents a significant retreat from previous emissions and climate-focused measures aimed at promoting electric vehicle (EV) adoption in the country. The decision comes amid challenges faced by the Canadian auto industry, which has been adversely affected by U.S. tariffs. Despite the cancellation of the EV sales mandate, Carney also announced the allocation of funds to support the production of electric vehicles in Canada. This initiative is part of a broader strategy to bolster the Canadian auto industry, which has been struggling due to disruptions caused by U.S. trade policy. The funding aims to position Canada as a global leader in electric vehicle production, addressing both economic and environmental concerns. The measures introduced by Carney are intended to provide relief to the Canadian auto sector while still promoting investment in electric vehicle technologies. The government’s focus on increasing EV production is seen as a response to the challenges posed by external trade policies and market conditions. The announcement reflects a balancing act between economic realities and environmental commitments in the context of the evolving automotive landscape.