TORONTO — Clean Energy Canada policy and strategy director Joanna Kyriazis made the following statement in response to the Government of Canada’s decision to pause and review its Electric Vehicle Availability Standard.
“Canada has an EV affordability problem: we’re missing out on the many lower-priced electric models being sold and enjoyed in countries around the world—saving not only the environment but also those drivers a lot of money on gas. And for Canadian governments, their first question when evaluating efforts to boost EV adoption should be ‘how are we going to fix Canada’s uncompetitive electric car market?’
“Clean Energy Canada recognizes that circumstances have changed since the initial regulatory structure of Canada’s Electric Vehicle Availability Standard. Today’s announcement of a delay in application by one year and a broader review of the policy can be an opportunity to better meet its most important objectives: giving consumers choice and getting EVs into the hands of those who want them.
“Canada’s EV Availability Standard has always been first and foremost a policy for consumers. As its name suggests, its very purpose is to make more EVs available for consumers, and as it ramps up in ambition, automakers will be incentivized to produce lower-priced models to meet more of the market. One study found that an EV standard in Canada would reduce the average price of an electric vehicle by 20%.
“Unfortunately, by attacking America’s EV sector, Donald Trump has carved a rift between the U.S. and the rest of the world—with Canada stuck in the middle, left with important choices to make. As EV adoption stumbles in North America, make no mistake: it is accelerating globally, with more than one in four cars sold this year projected to be electric worldwide. While short-term relief for automakers may be reasonable right now, consumers and industry also need more long-term certainty and alignment with the wider world.
“Moving forward, the EV Availability Standard needn’t be merely a policy designed for the cars of a distant tomorrow when it can be used to improve access to affordable EVs in the near term. Prime Minister Carney has made clear that one of his top priorities is “Bringing down costs for Canadians and helping them to get ahead.” A thoughtful retooling of the program could deliver on this promise, significantly easing the second-biggest household cost Canadians endure: transportation.
“It could also provide automakers additional pathways to satisfy its requirements. For example, carmakers could receive extra credits under the system for selling vehicles below a price point of $40,000. Many of these vehicles already exist, being sold in markets such as Europe. Similarly, carmakers could also gain credits for offering zero-interest financing on new EVs.
“There are other tools the government should explore using to help improve Canada’s uncompetitive EV market, including adopting European safety standards to open the gate for European models in Canada, reintroducing EV incentives to lower upfront costs, and yes, lowering Canada’s 100% tariff on Chinese EVs in a way that still balances protection for the auto industry with a healthier car market for consumers, much as Europe has done.
“As a new study by Clean Energy Canada released yesterday revealed, EVs remain a desirable choice for many Canadians, especially those in large metro regions and young Canadians. Across the GTHA and Metro Vancouver, for example, 59% of people are inclined to buy an EV as their next car, while that number reaches 71% for people under age 30 in those two regions. At the same time, even though 63% of respondents in our study correctly knew EVs are cheaper in the long run, 73% said they were unwilling to spend more than $40,000 upfront on one.
“Fundamentally, the changes proposed above would make the policy a little less about the targets of tomorrow and much more about the needs of affordability-constrained Canadians today.”
POLLING
- 45% of Canadians are currently inclined to buy an EV as their next car. (June 2025, Abacus)
- In large urban centers, interest is higher: 69% of people in Metro Vancouver and 55% of those if the GTHA lean toward getting an EV. (January 2025, Abacus)
- 63% of respondents in the GTHA and Metro Vancouver correctly know EVs are cheaper in the long run, but 73% say they are unwilling to spend more than $40,000 upfront on one. (January 2025, Abacus)
- 53% of Canadians would prefer a lower tariff on Chinese EVs that balances industry protection and consumer affordability, similar to Europe, while 29% support removing the tariff altogether. Only 19% of Canadians say they would prefer keeping in place a 100% tariff on Chinese EVs. (June 2025, Abacus)
- Respondents were also presented with another way Canada could open up its car market: allowing for sale any vehicle that has passed safety and environmental standards in Europe. This could increase the availability of car brands and models in Canada, including some smaller, more affordable EVs. The idea is overwhelmingly popular, with 70% support and only 10% opposition. (June 2025, Abacus)
