Ottawa and Ontario are committing new funding to electric vehicle manufacturing while postponing increases in vehicle emissions standards, pairing industrial investment with regulatory relief for automakers.
The measures form part of an $8.7-billion action plan announced today by Prime Minister Mark Carney and Ontario Premier Doug Ford to support steel, automotive and critical-mineral industries facing U.S. tariffs.
For the automotive sector, the governments will invest an additional $2.5 billion over two years in capital projects, including machinery and upgraded production lines for connected and electric vehicles. Ottawa will contribute $1.5 billion, with Ontario providing $1 billion.
At the same time, Canada will maintain greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year. Annual increases are scheduled to resume in 2030.
The plan also includes federal matching of Ontario’s initial investment of up to $1 billion over three years in road infrastructure supporting critical-mineral development in the Ring of Fire region, alongside coordinated permitting.
Clean Energy Canada welcomed the plan’s recognition of electrification but criticized the delay in stronger vehicle pollution standards.
For Canada’s clean-energy sector, the announcement presents a mixed signal: new support for domestic EV production and mineral supply chains, alongside a slower timetable for tightening vehicle emissions requirements.