The Government of Canada has announced plans to repeal the Electric Vehicle Availability Standard (EVAS), a regulation that mandated a minimum and rising share of zero-emission vehicle sales, culminating in a 100% ZEV requirement by 2035. 

Introduced in 2023, the EVAS aimed to increase electric vehicle availability through interim targets, including 20% of new vehicle sales by 2026 and 60% by 2030. Its repeal reflects a reassessment of market readiness and cost pressures faced by automakers, as EV adoption has progressed more slowly than expected. 

In place of the sales mandate, Canada will move toward a more stringent emissions-based regulatory approach, with the government stating its intention to more than double the stringency of vehicle greenhouse gas (GHG) emissions standards by 2035. Officials estimate that this shift could drive electric vehicle adoption to around 75% of new vehicle sales by that time, alongside an aspirational target of 90% by 2040. 

From an ESG reporting perspective, the policy change represents a structural shift in how transport decarbonization will be regulated and measured. Moving away from technology-specific mandates toward emissions intensity standards increases the importance of accurate GHG accounting, scenario analysis, and documented assumptions within corporate climate disclosures. 

For companies with vehicle fleets, logistics operations, or exposure to the automotive value chain, this change affects how transition pathways, emissions targets, and policy risks are reflected in sustainability reporting. Emissions-based regulation typically requires companies to demonstrate compliance through measurable emissions outcomes, rather than product mix alone. 

To support adoption, the government announced a new EV affordability program, offering purchase incentives of up to $5,000 for battery electric and fuel-cell vehicles and $2,500 for plug-in hybrids, with incentives tapering through 2030. Canada also plans to develop a national charging infrastructure strategy focused on private investment, EV-ready buildings, and workforce skills development. 

As governments increasingly favor outcome-based climate regulation, policy shifts like Canada’s reinforce the need for robust, auditable ESG data systems that can support emissions tracking, forward-looking assumptions, and consistent disclosures across reporting frameworks.