Prime Minister Mark Carney is moving away from the previous Trudeau government’s EV policy, saying the federal government is taking a “new, more ambitious sovereign path” to reducing auto emissions while supporting the Canadian auto sector.

He made the announcement in Vaughan, Ontario today.

The federal government is introducing incentives to encourage more consumers to consider the purchase of an EV or plug-in hybrid.

“Canadians who purchase or lease a battery electric, or fuel cell electric vehicle, will receive up to $5,000, and up to $2,500 for plug-in hybrids priced up to $50,000.”

He says the cap does not apply to Canadian-made plug in hybrids to help support the local auto industry. He says the incentives will only apply to vehicles produced in countries “with whom Canada has a free-trade agreement.”

The Prime Minister says Ottawa is also strengthening greenhouse gas emission standards which, it is hoped, will result in more manufacturers producing zero-emission vehicles.

Carney is also pledging access to affordable electric energy which will also act as an incentive for Canadians to buy EVs.