Liberals scrap EV mandate after federal blockysis pegs costs at $57.6 billion

The Carney government is permanently scrapping Canada’s electric vehicle sales mandate after a federal blockysis estimated eliminating the policy will avoid $57.6 billion in costs through 2050. 

The $57.6-billion cost estimate and repeal were first reported by Blacklock’s Reporter.

Environment Minister Julie Dabrusin issued notice Saturday that the Electric Vehicle Availability Standard, suspended by Prime Minister Mark Carney in February, will be repealed.

The regulations required electric vehicles to make up 20 per cent of new vehicle sales in 2026, rising to 60 per cent by 2030 and 100 per cent by 2035.

Ottawa’s new Regulatory Impact Analysis Statement estimates repealing the mandate will avoid $57.6 billion in costs between 2026 and 2050, roughly $2.3 billion annually.

The blockysis also warns keeping the mandate could put additional financial pressure on automakers and contribute to job losses and a contraction in Canada’s auto sector.

The reversal comes after Liberals rejected a Conservative motion to repeal the mandate in 2025 by a vote of 194-141.

The Environment Department had previously defended the policy as a benefit to Canadians, arguing increased EV adoption would reduce air pollution, health-care costs and expenses for motorists.