In a bold challenge to Ottawa’s green transportation agenda, major automakers have formally requested that Mark Carney, the Liberal government’s election campaign chair, help repeal Canada’s zero-emission vehicle (ZEV) mandate—a cornerstone of the country’s climate strategy. This unexpected development signals growing tension between industry priorities and environmental policy as Canada navigates its transition toward sustainable transportation.
The Canadian Vehicle Manufacturers’ Association (CVMA), representing automotive giants including Ford, General Motors, and Stellantis, addressed their concerns directly to Carney, highlighting what they describe as “unrealistic” implementation timelines. The mandate, which requires 20 percent of new vehicles sold by 2026 to be zero-emission, with gradual increases to 100 percent by 2035, has become a flashpoint in the ongoing debate about the pace of Canada’s green transition.
“The current ZEV mandate framework creates significant challenges for both manufacturers and Canadian consumers,” said Brian Kingston, president of the CVMA. “While we support the overall direction toward cleaner transportation, the aggressive timeline fails to account for market realities, supply chain constraints, and consumer adoption patterns.”
Industry analysts point to multiple factors complicating compliance with the mandate. Electric vehicle (EV) sales in Canada currently hover around 10 percent of new vehicle purchases—a significant increase from previous years but still far below the mandated targets. Additionally, infrastructure gaps remain substantial, with charging networks still underdeveloped in many regions, particularly rural and northern communities.
The automakers’ appeal to Carney is strategically significant. As a former Bank of Canada governor and respected economic voice within Liberal circles, Carney holds considerable influence over policy direction. The manufacturers hope his background in both finance and climate policy might lead to a more pragmatic implementation timeline that balances environmental goals with economic realities.
Environment Minister Steven Guilbeault has defended the mandate, noting that similar policies have successfully accelerated EV adoption in jurisdictions like British Columbia and Quebec. “The ZEV mandate provides regulatory certainty for automakers and signals to consumers that Canada is committed to a cleaner transportation future,” Guilbeault stated in response to industry concerns.
Consumer advocacy groups have expressed mixed reactions. While environmental organizations strongly support the mandate, affordability concerns persist. The average electric vehicle in Canada costs approximately $54,000—substantially higher than conventional vehicles—although prices have begun to decrease as technology improves and production scales up.
“The transition to zero-emission vehicles represents a fundamental restructuring of Canada’s automotive landscape,” explained Dr. Joanna Martin, transportation policy expert at the University of Toronto. “While the environmental benefits are clear, the economic implications for manufacturers, dealerships, and consumers are complex and require careful management.”
The outcome of this industry push against the ZEV mandate will likely influence Canada’s broader climate strategy. The transportation sector accounts for approximately 25 percent of the country’s greenhouse gas emissions, making vehicle electrification essential to meeting national climate targets.
As this debate unfolds, a fundamental question emerges for Canadian policymakers and citizens alike: How do we balance the urgent need for climate action with the practical realities of transforming a complex transportation system that millions of Canadians rely on daily?
