Canada has put its planned tightening of vehicle emission standards on hold, freezing fleet-wide targets at 172 grams of CO2 per mile until the 2030 model year, according to a report by Gasgoo, a Chinese automotive news outlet. The decision, announced on October 21, reverses the federal government's earlier plan to phase in stricter rules starting with the 2028 model year.
Policy shift amid trade pressures
The freeze is part of a joint federal-provincial package with Ontario that includes 8.7 billion Canadian dollars (about $6.4 billion) in new funding to support steel and automotive industries hit by tariffs. A government official from Environment and Climate Change Canada said consultations with industry on updated rules will still begin next year, but the emission trajectory will remain unchanged until the 2030 model year.
Canada had previously aimed to introduce a draft regulation in 2027 that would push toward a 74 g/mi target by 2035, a level corresponding to 75% of new car sales being electric vehicles (EVs). While the new rules are delayed by two years, the government retains its 2035 goal of 75% EV sales.
The move follows Canada's earlier repeal of the Electric Vehicle Availability Standard (EVAS), a mandate that required automakers to sell a certain proportion of zero-emission vehicles. The latest adjustment gives companies “short-term flexibility” amid external trade pressures, the government said.
Industry split over the freeze
Automaker groups largely welcomed the decision. Brian Kingston, CEO of the Canadian Vehicle Manufacturers' Association, which represents Detroit's Big Three in Canada, said the delay provides policy certainty while Canada and the US negotiate trade differences and Washington finalizes its own vehicle emission rules. “Even maintaining the current standards is difficult to enforce,” he said, noting that fuel efficiency gains for internal combustion engine vehicles are nearing their technical ceiling. To meet stricter targets, automakers would need to sell more EVs, but consumer appetite for switching remains weak, he added.
Lucas Malinowski, CEO of the Global Automakers of Canada, which represents foreign brands, said the slower legislative pace helps companies deal with tariffs and gives the government more time to craft achievable goals beyond 2030. “The immediate benefit is policy certainty and breathing room,” he said.
However, EV and environmental groups criticized the freeze. Daniel Breton, CEO of Electric Mobility Canada, which covers the full EV supply chain, argued the delay will slow EV adoption and the build-out of supporting infrastructure. “This means the pace of investment and job creation across the supply chain will slow,” he said. He noted that while the government is focused on preserving vehicle assembly jobs, workers in battery supply chains and EV infrastructure are bearing the brunt of the policy shift.
Travis Allan, CEO of the Canadian Charging Infrastructure Council, said in an email that the delayed rules will curb capital spending by charging station operators, raising the barrier for consumers to switch to EVs. He also warned that the adjustment increases the pressure on Canada to meet its 2035 emission target, casting doubt on whether that goal can be achieved on time.
