The federal and Ontario governments announced the changes on October 21. The EV rebate isn't part of it, and the January 1 rebate drop still stands.
Automakers selling in Canada get a four-year pause on tighter emissions rules. On October 21, 2026, Prime Minister Mark Carney and Ontario Premier Doug Ford announced that the fleet-average standard in Canada's light-duty vehicle greenhouse gas regulations will stay at its 2026 level, 172 grams per mile, through the 2029 model year (Government of Canada backgrounder). The two governments are also putting an extra $2.5 billion over two years into large automotive capital projects in Ontario (Prime Minister's Office).
Canada's light-duty vehicle greenhouse gas regulations set a fleet-average limit that each automaker's new cars and light trucks have to meet, and that limit was set to get stricter every year. Under the October 21 announcement, the standard will be held at the 2026 level of 172 grams per mile through 2029, and annual increases will resume with the 2030 model year (Government of Canada backgrounder).
The government's stated reason: "Maintaining the fleet average performance standard will provide manufacturers with near-term flexibility at a time when the industry is facing trade-related pressures." The backgrounder adds that it will also let automakers generate greenhouse gas credits for use in later years.
The fleet-average standard stays at 172 grams per mile through the 2029 model year.
Yes. The backgrounder says the increases that resume in 2030 are "in line with Canada's new target of 75% EV car sales by 2035", announced in the federal auto strategy in February 2026. The government puts that target at the equivalent of 74 grams per mile.
To large-scale automotive capital projects, so manufacturers can invest in new machinery and upgraded production lines for connected and electric vehicles (PMO release). Ottawa is putting in up to $1.5 billion and Ontario up to $1 billion. It adds to the $3 billion from the Strategic Response Fund and $100 million from the Regional Tariff Response Initiative in the February 2026 auto strategy. The two governments are also setting up a Canada-Ontario Automotive Task Force to oversee the auto measures.
No. Neither the PMO release nor the backgrounder mentions the Electric Vehicle Affordability Program. Transport Canada's EVAP page still says the incentive drops on January 1, 2027, from up to $5,000 to up to $4,000 for a battery EV, based on when the dealer submits your pre-approval. One practical note for this weekend: Transport Canada says the EVAP dealer portal is down for planned maintenance from 8:30 PM ET on Friday, October 23, to 5 PM ET on Sunday, October 25. Our EV rebates guide and EVAP story have the details.
Also covered by Electric Autonomy Canada.
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