Toronto, ON — The Toronto Region Board of Trade (the Board) is calling on federal decision makers to reconsider their approach to zero-emissions targets. In a new paper, titled Ramping Up Electric Vehicle Uptake and Production (REV-UP), the Board warns that failing to act could result in further job losses and cost the automotive sector nearly $1 billion in Q1 2026.
The paper underscores the mounting cost burden to the sector associated with the compliance deficit credits included in the current federal mandate. At a time when the EV sector is under pressure from US policy change, and our current foothold in the clean economy is slipping, policies should focus on protecting, supporting and incentivizing manufacturers, rather than penalizing them. The Board has laid out four recommended actions, which are:
- Repealing the Zero Emission Vehicles (ZEV) mandate in its current form
- Reintroducing federal demand-side incentives for ZEV purchases
- Supporting suppliers with targeted tax relief and strategic investments in charging infrastructure
- Establishing a fast-track approval process for major investments in domestic content, battery sourcing and supply chains.
Under the Board’s recommended approach, the total cost to the automotive sector is projected to be reduced to just $83 million in Q1 2026, while federal program expenditures would remain below $406 million in Q1 2026, a far more economical and commercially viable solution.
Signalling stability in EV policy is key to building an environment that supports investment attraction to the Toronto region. Repealing the federal ZEV mandate is the first step of many towards unlocking our economic growth, and securing good, high-paying jobs for Canadians. To read the report and learn more about the Board’s advocacy for the EV and automotive sector, visit: Ramping Up Electric Vehicle Uptake and Production
On the ZEV mandate:
“We all want a cleaner economy, but we won’t get there by imposing unattainable targets. Instead of using a stick approach, the federal government should restore buyer incentives and lower the cost of transition, along with supporting more charging infrastructure. That’s how we protect jobs, build investor confidence, and grow our economy.”
— Roselle Martino, Executive Vice President, Policy and Strategic Affairs of the Toronto Region Board of Trade
The Toronto Region Board of Trade is one of the largest and most influential business chambers in North America and is a catalyst for the region’s economic agenda. We pursue policy change to drive the growth and competitiveness of the Toronto region and facilitate market opportunities with programs, partnerships and connections to help our members succeed – domestically and internationally.
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