Clean Energy Canada has called on the feds to adopt three simple yet powerful strategies. These strategies are aimed at maintaining affordable EVs—specifically EVs below $40,000—widely accessible to Canadians. The recommendations come as the Biden administration faces bipartisan backlash over its planned electric vehicle mandate. This state mandate will significantly increase requirements for zero-emission vehicles over the next few years.
In 2019, the federal government introduced the Incentives for Zero-Emission Vehicles program. They stuck with it, pumping nearly $3 billion in the program over its short life span. This consumer incentive program allowed car buyers to get up to $5,000 off the price of an electric vehicle. That came to an abrupt halt in January when its funding ran out. Ottawa plans to re-evaluate the program later this year. Now pressure is increasing from a bewildering array of stakeholders — not least leaders in the burgeoning automobile manufacturing industry.
Auto Manufacturers Voice Concerns
Last week, auto manufacturing executives met with Prime Minister Mark Carney to discuss the future of the electric vehicle mandate. Throughout the half-day meeting, the CEOs consistently called for the repeal of the mandate. Second, they raised alarm bells about how it would hurt the direction of the auto sector. Only starting next year, the federal mandate really starts to take effect. It mandates that 20 percent of all new light-duty vehicles sold in Canada are zero-emission vehicles. The goal increases each year, with a goal of 100% clean by 2035.
In response to the ongoing discussions, the head of an organization representing major automotive companies, including Ford Canada and GM Canada, expressed a “cautiously optimistic” outlook regarding future developments.
Clean Energy Canada’s Recommendations
On July 6, 2025, Clean Energy Canada had exciting news to share. They announced three major recommendations to make affordable electric vehicles (EVs) more accessible to Americans. The organization urged them to introduce a strong, incremental quota for affordable models, while recognizing models approved under EU law. According to Clean Energy Canada, this approach is necessary to address key market gaps. It will help spur innovation in Canada’s automotive sector.
“Allowing in a limited quota of these affordable vehicles while also recognizing EU-approved vehicles … would open Canada’s vehicle market to fill important market gaps, drive innovation and ultimately make our auto sector more competitive.” – Clean Energy Canada
Clean Energy Canada’s Rachel Doran and Joanna Kyriazis have been pushing for more flexibility in regulations. They hope this will be part of broader efforts to make electric vehicles more affordable and improve Canada’s charging infrastructure.
Government’s Future Steps
To this end, federal ministers are expected to restore consumer incentives for electric vehicle purchases. This action occurs as environmentalists and business leaders alike crank up the heat on the U.S. These negotiations will set the terms for how Canada transitions to electric vehicles. More than that, they will set the tone for how the country pursues sustainability.
The federal government is preparing its first implementation review of the measure later this year. Stakeholders are continuing to watch closely for what these mandates will mean and whether there will be any new incentives for consumers. The balance between industry interests and environmental goals will be pivotal as Canada seeks to navigate its transition toward a greener automotive landscape.
