On February 5, 2026, Canadian Prime Minister Mark Carney announced a number of initiatives aimed at the Canadian automotive sector. Below, we outline the impact of these changes on Canadian electric vehicle (EV) policy.
The new government measures impact Canadian EV policy as follows:
Learn about these initiatives below.
The new initiative replaces Canada’s Electric Vehicle Availability Standard, which was introduced in December 2023, and targeted 100% EV adoption in Canada by 2035. This new initiative changed the target to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040.
Consumer rebates for EVs, offered through Canada’s Zero-Emission Vehicle Program (iZEV), were paused in 2025 after funding ran out. Prime Minister Mark Carney announced a $2.3 billion EV Affordability Program, offering Canadian consumers rebates of roughly $5,000 for fully electric vehicles and $2,500 for plug-in hybrids (PHEVs).
The EV rebates are only eligible for:
Canadian-made EVs of any value
EVs with a final transaction value up to $50,000 that are produced in countries with a free trade agreement with Canada.
The Canadian government also made an increased infrastructure investment of $1.5 billion through the Canada Infrastructure Bank’s Charging and Hydrogen Refueling Infrastructure Initiative, hoping to make EV charging more accessible across the country.
Learn more about all the new EV measures on the Prime Minister of Canada's official website.
Related:
Rising EV Demand in Canada: Why Are More Canadians Choosing EVs?
Why EV-Ready Buildings Are Key to Canada’s EV Future
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