Ottawa has announced a freeze on light-duty vehicle greenhouse gas standards at 2026 levels through the 2029 model year.
Prime Minister Mark Carney and Ontario Premier Doug Ford announced the measure on Oct. 21 alongside an $8.7-billion package supporting automotive manufacturing, steel production and critical mineral development.
Annual tightening of vehicle emissions standards will resume with the 2030 model year. The federal government is maintaining its target of electric vehicles accounting for 75% of new car sales by 2035.
The pause applies to manufacturers’ fleet-average greenhouse gas performance requirements. Automakers will also retain the ability to generate emissions credits for use in later years.
Carney and Ford announced an additional $2.5 billion over two years for automotive capital projects. Ottawa will contribute up to $1.5 billion, with Ontario providing up to $1 billion.
The funding will support machinery and production-line upgrades for connected and electric vehicles. It builds on manufacturing support announced under the federal auto strategy in February, including funding for assembly and parts production.
A new Canada-Ontario Automotive Task Force will coordinate the automotive measures.
The package also includes a Joint Steel Action Fund, backed by five-year commitments of $3.55 billion from Ottawa and $1.67 billion from Ontario.
The steel funding will support production diversification and access to overseas markets. Federal and provincial procurement policies will prioritize Canadian steel, while the Canada Border Services Agency will strengthen monitoring and enforcement against unfairly traded imports.
A separate steel task force will initially examine ways to reduce shipping costs.
Ottawa will also match Ontario’s initial investment of up to $1 billion over three years for road infrastructure supporting critical mineral development in Northern Ontario’s Ring of Fire. Northern Ontario’s Ring of Fire is a remote, mineral-rich region in the James Bay Lowlands, roughly 540 kilometres northeast of Thunder Bay. It contains major deposits of nickel, copper and chromite, offering potential supplies for electric vehicle batteries, electrical equipment and stainless steel.
“Working in partnership to protect Canadian workers, Ontario and Canada are fortifying our industrial base and securing the good-paying jobs of the future,” said Ford.
