<figure id="attachment_3221362" aria-describedby="caption-attachment-3221362" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-3221362" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/11/5d4878f6-mark-carney-1.jpg" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3221362" class="wp-caption-text">Prime Minister Mark Carney said he wanted to incentivise EV production while bolstering a Canadian auto industry hammered by US tariffs. (EPA Images pic)</figcaption></figure>
TORONTO: Prime Minister Mark Carney on Thursday cancelled a mandate for all vehicles sold in Canada to be electric by 2035, while announcing a multi-billion-dollar plan to support EV production.
The announcement marked another departure from policies backed by his climate-focused predecessor Justin Trudeau, but Carney said he wanted to incentivise EV production while bolstering a Canadian auto industry hammered by US tariffs.
Since replacing Trudeau last year, Carney has also scrapped the former leader&#8217;s carbon tax on individual households and advanced plans to build a new oil pipeline from Alberta to the Pacific coast &#8212; infuriating environmental groups.
Asked Thursday if he still considered Canada a leader in the fight against climate change, Carney said: &#8220;Absolutely.&#8221;
He stressed his climate policies would be focused on &#8220;results and solutions&#8221;.
Trudeau had passed legislation mandating that 20% of vehicles sold this year be electric, with a 60% target by 2030 &#8212; benchmarks that faced criticism from automakers.
While he pivoted away from those mandates, Carney stressed that the future strength of Canada&#8217;s auto industry required a transition to EVs.
&#8220;We know where the auto industry is headed. We&#8217;re going to support that transition,&#8221; he told reporters.
Carney said his goal was 75% EV sales by 2035, and a 90% target by 2040.
To get there, he has earmarked CAN$3 billion (US$2.2 billion) &#8220;to help the auto industry adapt, grow and diversify to new markets,&#8221; his office said in a statement.
Carney said his goal is to position &#8220;Canada to become a global leader in electric vehicle (EV) production&#8221;.
Underlying the strategy was the need to prepare the Canadian sector for a future where the highly integrated North American auto sector is transformed by US tariffs, Carney said.
&#8220;There&#8217;s no greater symbol of how closely the Canadian and American economies have been intertwined than automobiles,&#8221; the prime minister said.
&#8220;The average car is built from parts that travel across our border up to eight times before landing on the showroom floor,&#8221; he added, while warning: &#8220;That trade relationship that once was a great strength has now become a serious vulnerability.&#8221;

MatchPoint Times

Carney scraps Canada’s EV sales mandate

Instead of the mandate for all vehicles sold to be electric by 2035, the prime minister announced a multi-billion-dollar plan to support EV production.

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