Repealing electric vehicle targets will cost Canadians $54 billion in gas expenses
The Canadian government is moving forward with the repeal of the “electric vehicle availability standard” established by the previous administration under Justin Trudeau, which required that zero-emission vehicles (ZEVs) account for at least 20 percent of sales in 2026, 60 percent in 2030, and 100 percent starting in 2035.
The proposal was published in the Canada Gazette on August 15.
“These requirements would place financial pressure on automakers as they deal with changing market and trade conditions in North America, which could make compliance difficult and, as a result, jeopardize the domestic automotive manufacturing sector and the supply of vehicles in Canada,” the statement reads.
In short, Ottawa is siding with the Canadian auto industry, offering it “some flexibility during this period of significant economic uncertainty,” and aligning itself with the United States, which, under Donald Trump, has abolished emissions standards for automobiles.
The Severe Environmental Impact
According to the Canada Gazette, the Canadian automotive sector contributed approximately $16.8 billion to the gross domestic product in 2024 and supports a total of about 500,000 jobs (including parts suppliers and dealer networks). By eliminating its ZEV targets, the government acknowledges that the number of models available on the market will decrease and that consumers will purchase fewer vehicles than previously anticipated.
On the one hand, they will collectively save $57.6 billion between 2026 and 2050, as they will no longer have to bear the higher upfront cost of a zero-emission vehicle or the cost associated with installing a home charging station. This figure is, of course, disputed by environmental groups, including Electric Mobility Canada, which point to the growing price parity between gasoline-powered and electric vehicles.
On the other hand, these same consumers will forgo the resulting fuel savings, estimated at $53.8 billion over the same period, not to mention maintenance costs. According to federal estimates, this policy shift will deprive Canada of 326 megatons in greenhouse gas (GHG) emissions reductions, resulting in $94.2 billion in “potential global damages attributable to climate change.”
As announced in February as part of its new automotive strategy, the government is currently working on regulations focused on reducing GHG emissions, but new public consultations will take place this fall, and the draft of these standards is not expected to be ready until June 2027, according to The Canadian Press.
Ottawa’s new target is reportedly 75% zero-emission vehicles (ZEVs) of total vehicle sales by 2035 and 90% by 2040, leading to a reduction in GHG emissions of approximately 145 megatons by 2050, according to current projections.
