The federal government is looking at whether to bring back consumer rebates for electric vehicles as it finishes a new national auto strategy, according to CBC News.
Sources familiar with the discussions told CBC News that Ottawa is reviewing EV and plug-in hybrid incentives, but no final decision has been made yet. The sources were not authorized to speak publicly.
When asked directly about the issue on Tuesday, Transport Minister Steven MacKinnon did not confirm anything, saying only that there will be “more news on that to come.”
Canada’s previous EV rebate program, known as iZEV, was paused more than a year ago after running out of money. At the time, it offered buyers up to $5,000 off the purchase of a zero-emission vehicle.
Last year, Environment Minister Julie Dabrusin suggested a new rebate program was being worked on. However, the first federal budget under Prime Minister Mark Carney did not include any new EV incentives or funding to restart iZEV.
CBC News also reports that the upcoming auto strategy, expected in February, will address the government’s paused EV sales mandate, charging infrastructure and foreign investment. A senior government official said the plan will also outline how Ottawa approaches EV investments from countries like South Korea, Germany and China.
That official spoke after Carney’s recent trip to Beijing, where Canada agreed to lower tariffs on a limited number of Chinese-made EVs each year. In return, China agreed to reduce tariffs on some Canadian agricultural products.
Ahead of Tuesday’s cabinet meeting, Industry Minister Mélanie Joly would not say whether incentives or the EV mandate will change. “The auto strategy is being worked on and these are different conversations we’re having,” she said.
The EV mandate itself is still under review. It would require 60 per cent of new vehicle sales to be electric by 2030 and 100 per cent by 2035. Carney paused the first set of targets last fall, saying the auto industry was already under heavy pressure, including from U.S. tariffs.
Sources also told CBC News the government is looking at ways to expand Canada’s charging network to ease concerns about running out of power on long trips. That could include new partnerships and possibly fast-tracking charging projects, as well as restoring funding for charging stations through existing federal programs.
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