Canada Shifts Gears on EV Strategy: Incentives Over Mandates

Canada, under Prime Minister Mark Carney, has scrapped the national electric-vehicle sales mandate in favor of boosting incentives for EV purchases and charging infrastructure. The government will invest billions to support the auto-manufacturing sector's transition to electric cars, reflecting a shift in policy amidst industry feedback and global trade dynamics.

Ottawa, under the leadership of Prime Minister Mark Carney, announced a significant policy shift on Wednesday by discarding the national electric-vehicle (EV) sales mandate. Instead, the focus is now on enhancing incentives for both purchasing EVs and developing charging infrastructure across Canada.

The Canadian government will allocate C$2.3 billion to offer incentives of up to C$5,000 for EV purchases or leases. Additionally, C$1.5 billion will be earmarked for building and expanding EV charging infrastructure. This policy change aims to support the auto-manufacturing sector with C$3.1 billion to facilitate its transition to producing electric vehicles.

This move prompted mixed reactions, with automakers lauding the decision for reducing burdens on the industry, while environmental groups expressed concern over the potential long-term impacts on climate goals. Carney emphasized that the changes aim to avoid undue strain on the auto sector while maintaining Canada's leadership in climate change initiatives.

(With inputs from agencies.)