Maintaining Canada’s light-duty vehicle greenhouse gas ambition

A letter to Prime Minister Mark Carney

Dear Prime Minister Carney,

On behalf of Electric Mobility Canada (EMC), I am writing to express our serious concern with last week’s announcement that the fleet average GHG standard in Canada’s light-duty vehicle greenhouse gas regulations will remain at the 2026 level of 172 grams per mile through 2029.

Supporting Canadian workers, automakers and suppliers through tariff pressures must not come at the expense of vehicle emissions standards. Measures to strengthen domestic manufacturing and investment in connected and electric vehicles must reinforce—not undermine—Canada’s transition. Freezing the standard for three model years weakens an important market signal precisely when Canada needs clear, durable policy to attract investment, reduce transportation emissions and give consumers access to more efficient, affordable vehicles.

Canada ranks last in vehicle fuel efficiency, behind every European country and all other countries included in the IEA’s Global Fuel Economy Initiative. Natural Resources Canada data show only marginal progress: between 2017 and 2023, average fuel consumption improved by just 2.6%, with on-road gasoline consumption declining from 8.0 to 7.7 L/100 km for cars and from 10.7 to 10.0 L/100 km for light trucks. Freezing the standard now would entrench this stagnation and risk leaving Canada at the bottom of international rankings for years to come.

This is also an affordability issue. With gas prices at record highs, it is counterproductive to leave Canada without a federal measure that continues to improve fuel economy and reduce emissions. Without one, Canadians will have fewer efficient, affordable vehicle options and will pay more than they should at the pump. Stronger standards help households save on vehicle and fuel costs, precisely when they need relief.

When announcing Canada’s Automotive Strategy, you committed to 75% EV sales by 2035 and 90% by 2040, with a new GHG program intended to deliver those outcomes. EMC members took that commitment seriously. Holding fleet-average GHG stringency at model year 2026 levels while repealing the Electric Vehicle Availability Standard (EVAS) before a replacement instrument is in force is a freeze, not a trajectory toward those targets. This policy uncertainty threatens Canadian companies, including the majority of EMC’s 180 member organizations, and the 130,000 Canadians working in the EV industry. Allowing manufacturers to generate GHG credits during a period of flatlined standards risks further delaying real-world emissions reductions and making the later transition more abrupt and costly. Industry needs a credible, durable framework to deliver the vehicles, charging infrastructure and jobs your commitment requires.

To establish a credible regulatory pathway toward your stated EV sales targets, Electric Mobility Canada respectfully urges your government to:

  • Launch consultations on the fleet average GHG standard promptly and adopt new GHG emission standards for 2030 by Q2 2027 at the latest, so industry can plan accordingly;
  • Explicitly confirm that the 75% EV sales target and implementing regulations count only battery-electric, plug-in hybrid and fuel-cell electric vehicles—not conventional hybrids, which aren’t EVs;
  • Convene the electric mobility sector, automakers, labour, provinces and consumer representatives promptly to develop a credible pathway that protects jobs while preserving Canada’s climate ambition;
  • Work with charging providers and utilities to introduce targeted measures that address lower network utilization resulting from slower EV adoption, protect existing charging investments and sustain deployment and electrical upgrades in strategically important locations.

Given the urgency and far-reaching consequences of this decision, EMC respectfully requests a meeting with you as soon as possible, together with the responsible ministers, to discuss a balanced approach that protects Canadian workers, strengthens our automotive industry and preserves necessary emissions reductions. Our team is available at your earliest convenience.

Yours sincerely,

Daniel Breton
President & CEO
Electric Mobility Canada

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