Canada freezes vehicle emission standards to protect auto industry

The Canadian federal government and the province of Ontario have announced a freeze on CO2 emission standards for passenger cars and light trucks through 2029. Under this measure, manufacturers will be required to maintain a fleet average of 107 g of CO2/km, which is the level set for 2026. Stricter requirements are not scheduled to resume until the 2030 model year.

This policy shift follows the previous removal of mandatory zero-emission vehicle sales quotas. While Canada maintains a long-term goal of 75% electric vehicle sales by 2035, the current decision aims to support a domestic automotive industry facing significant pressure from trade tensions with the United States.

Industry leaders, including executives from Honda Motor, have warned of catastrophic consequences if Canada and the United States fail to reach a new trade agreement. There are growing calls for a trilateral pact involving Mexico, similar to the USMCA, to prevent tariff duplication and ensure stability in the North American automotive sector.