In Ottawa, the ban on the sale of gasoline-powered vehicles scheduled for 2035 will be lifted and a different regulatory scheme will be chosen, focused on efficiency standards and economic incentives.
Elimination of the ban on gasoline vehicles
According to information known prior to the formal announcement, the Executive headed by Mark Carney will replace the veto on internal combustion engines with more stringent fuel economy standards. The rules will seek to reduce emissions without imposing a direct mandate on manufacturers and consumers.
On the other hand, the new automotive strategy includes tax incentives to accelerate the adoption of electric vehicles. Among the measures envisaged is a tax credit of up to C$5,000 per unit and the creation of a C$1.5 billion fund for charging infrastructure across the country.
The change also responds to warnings from the Canadian automotive industry, which had been reporting difficulties in meeting electric vehicle sales targets set for 2030 and 2035. Some manufacturers and dealers argued that the original schedule raised costs and restricted the supply available to consumers.
The plan also introduces an industrial component. The government will prioritize support for plants that produce automobiles in Canada, with the aim of protecting jobs from the impact of U.S. tariffs on vehicles manufactured outside the country.
Finally, although the explicit ban disappears, the electrification of transportation remains a strategic priority. The use of stricter efficiency standards maintains pressure on manufacturers, a formula already applied in other jurisdictions and which de facto limits the viability of high-emission models.
Source and photo: OilPrice