Canada EV subsidy and emission policy

In July 2026 the Canadian government reported that more than $190 million in federal electric‑vehicle rebates had been claimed through June, with 44,315 applications—about half from Quebec—under a program relaunched earlier in the year and funded with $2.275 billion to support up to 840,000 new EVs. The rebates offered up to $5,000 for fully electric models and $2,500 for plug‑in hybrids, applying only to vehicles priced below $50,000, while domestically built EVs such as the Dodge Charger and Chrysler Pacifica were exempt from the price cap. EVs comprised 9.6 % of new car sales in April‑May, a dip from the 12 % share seen after the previous rebate reinstatement.

A week later the federal government announced a broader automotive strategy to replace the scrapped Electric Vehicle Availability Standard. The plan includes tougher tailpipe‑emission rules intended to lift electric‑vehicle sales to 75 % of new cars by 2035, short of the earlier 100 % target. Alongside the regulatory proposal, Environment Minister Julie Dabrusin unveiled $10.9 million for 22 charging‑infrastructure and education projects, aiming to install nearly 400 chargers and fund awareness initiatives. The combined measures reflect a shift from direct rebate payouts to a longer‑term focus on emissions standards and network expansion to sustain Canada’s electrification goals.