Canada’s EV Policy Shift Is About Credits, Not Mandates - CleanTechnica

Canada has shifted its electric vehicle (EV) policy from explicit sales quotas to a system focused on tightening fleet average greenhouse gas emissions standards, combined with open credit trading and a trade policy that permits significant imports of low-cost EVs. Rather than mandating fixed EV sales percentages, the government now requires manufacturers and importers to meet progressively stricter average emissions targets across all vehicles sold each year. EVs count as zero emissions, while internal combustion vehicles are assessed by their certified CO2 output. The standards are set to tighten annually by about 10%, aiming to reduce fleet average emissions from around 170 gCO2/km in 2027 to near 100 g by 2032. Compliance is measured over a vehicle’s lifetime emissions, with credits generated by selling low- or zero-emission vehicles that can be traded among companies. This approach creates a market-driven system where manufacturers must increase EV sales rapidly or face rising costs from purchasing emissions credits. For example, General Motors, which currently sells mostly