Energy
Canada and EU adjust vehicle emissions and EV targets
Canada and the European Union have introduced delays to their motor vehicle emissions mandates, citing economic pressures and industry transitions.
Key points
- Canada has frozen its vehicle emissions standards at 172 grams per mile through 2029.
- The Canadian government and Ontario are providing CAD 2.5 billion to support domestic auto manufacturers.
- EU policymakers are considering lowering the 2035 zero-emission vehicle target to 95 percent under certain conditions.
What happened
Policy adjustments in major economies have altered the timeline for vehicular decarbonisation. According to CleanTechnica, Canada has implemented a three-year freeze on its vehicle emissions requirements, keeping the current limit of 172 grams of greenhouse gas emissions per mile in place until the end of 2029. Despite this pause, the federal administration maintains its long-term objective for electric vehicles to account for 75 percent of new car sales by 2035.
Prime Minister Mark Carney and Ontario Premier Doug Ford stated that maintaining the fleet average performance standard offers manufacturers necessary flexibility during a period of trade-related challenges. Concurrently, federal and provincial authorities are committing $2.5 billion over a two-year period to assist capital projects undertaken by domestic automotive producers. Reaction among stakeholders has been mixed, with environmental organisations warning that the delay could impede progress, while industry representatives welcomed the extended schedule.
Meanwhile, European policymakers are reviewing targets for the next decade. Reports from Handelsblatt indicate that centrist factions have reached a consensus allowing the 100 percent reduction target to be adjusted to 87.5 percent, provided that automakers incorporate at least 7.5 percent green steel into production. This adjustment would effectively set the electric vehicle sales expectation at 95 percent by 2035 rather than a complete phase-out of internal combustion engines.
Why it matters
Shifts in regulatory timelines within industrialised nations carry implications for global supply chains and technology adoption rates. For emerging economies and energy investment strategists, alterations in Western electric vehicle mandates can influence battery mineral demand, technological scaling, and capital allocation across the energy sector. While developed markets navigate political and economic trade-offs to protect domestic manufacturing employment, global petroleum demand dynamics remain tied to the pace of transport electrification. Data from the US Energy Information Administration recorded Brent crude at $115.22 per barrel and WTI at $107.89 per barrel in October 2026, underscoring the ongoing relevance of conventional fuels while transition policies undergo revision.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
