Thank you, Megan.
The EVAS requirements were implemented through amendments to Canada's existing greenhouse gas regulations for passenger cars and light trucks, which were originally published in 2010. The regulations were implemented under existing authorities set out in the Canadian Environmental Protection Act, 1999. The EVAS sets annual EV sales requirements, starting at 20% by 2026 and growing to 60% by 2030, then 100% by 2035.
Canada is not the only country to have EV targets. Other jurisdictions outside—and inside—Canada also have targets. In the U.S., 11 state governments, representing 40% of the North American auto market, have EV targets and measures. The United Kingdom, the European Union and those 11 U.S. states, including California, New York and Washington state, have adopted targets of 100% EV sales by 2035. China also adopted a lower target, 20% EV sales by 2020, which has already been surpassed. Over 50% of vehicle sales in China are now electric vehicles. Norway will likely be the first country to achieve its world-leading target of 100% EV sales by 2025. Ethiopia was the first country to disallow the import of all gas-powered vehicles in 2024.
In Canada, British Columbia and Quebec have adopted EV targets. B.C.'s current target is 100% EV sales by 2035. Quebec recently announced a new target of 90% battery electric vehicles and plug-in hybrids by 2035.
Canada's regulations go beyond mandatory sales targets.
The standard includes a series of compliance flexibilities including early action credits, the ability of automakers to carry forward credit deficits by three years, credits for the sale of plug‑in hybrid vehicles as well as investments in fast‑charging infrastructure.
In essence, this means that there are multiple ways companies can comply with the regulations. For example, companies could sell more EVs or purchase surplus credits from other companies. Automakers could also use their own excess credits from previous years, including early action credits accumulated in 2024 and 2025. They could invest in fast-charging infrastructure or apply credits earned through the sale of plug-in hybrids.
The regulations apply to all companies that manufacture new passenger cars, SUVs and pickup trucks in Canada or import those on-road vehicles into Canada for the purpose of selling them to the first retail purchaser. It does not apply to on-road, medium and heavy-duty vehicles or off-road vehicles used in areas such as construction, agriculture, forestry or mining.
Manufacturers and importers have the option to exclude emergency vehicles. All companies have the same targets.
The regulations define zero-emission vehicles as battery electric vehicles, or BEVs, which are fuelled only with electricity; fuel cell vehicles, FCVs, which operate using hydrogen; and plug-in hybrid electric vehicles, PHEVs, which can run exclusively on electricity for a specified minimum distance before they transition to operating as hybrid vehicles using both liquid fuels and electricity.
On September 5, 2025, the Prime Minister announced a 60-day review of the electric vehicle availability standard. The review recognizes that automakers are navigating extreme market dynamics. It was launched in the context of the 2025 U.S. tariffs placed on Canadian vehicles, the resulting shifts in the automotive industry, and the related economic uncertainty.
The objective of the review is to ensure that the EVAS continues to reflect market realities, remains effective for Canadians and doesn't place an undue burden on automakers, while keeping a clear focus on a net‑zero future.
The Prime Minister also announced that automakers' compliance obligations for the 2026 model year would be removed to help reduce the economic pressure due to tariffs. The government also announced that it would explore ways to improve Canadians' access to more affordable EVs, and that work is being led by Transport Canada. The review will consider potential amendments to the annual sales targets, including the 2035 standard, and it will explore possible additional flexibilities.
The 60‑day review is giving Canadians and all interested parties an immediate opportunity to provide input on the regulations. The review will ensure that the standard is effective and achievable and that it supports both our climate goals and the competitiveness of our automotive sector.
One in four vehicles sold in the world today is an electric vehicle, and demand is expected to continue to increase in Canada over time as upfront purchase prices come down and more vehicle choices come to market.
During the review, the government has received considerable input from stakeholders, provinces and territories and indigenous organizations as part of a comprehensive process to identify potential changes that could provide additional flexibilities and reduce costs. As the review period comes to a close on November 4, the government will consider the feedback received from automotive manufacturers, industry associations, environmental non-governmental organizations, national indigenous organizations, provinces, territories and others.
The review is ongoing until midnight on November 4. We expect to receive submissions up until that time. No decisions on regulatory changes have been made at this time.
We will provide an update later this year on the results of the review. ECCC will be moving to publish a regulatory proposal in the winter of 2026 for additional consultation prior to finalizing the amendments in late 2026.
Thank you.
