Investing in technology is good not only for the environment, but also for the economy. And creating a prosperous net-zero future includes transforming transportation technologies. Freight transportation is critical to the Canadian economy yet currently accounts for over 10 percent of Canada’s overall climate-warming emissions. That is why the Government of Canada is investing in initiatives that build a low-emissions transportation sector and help companies thrive in a decarbonized industry while creating healthier, affordable, more sustainable communities for future generations.
Today, the Minister of Transport, the Honourable Omar Alghabra, on behalf of the Minister of Natural Resources, the Honourable Jonathan Wilkinson, launched two upcoming calls for proposals to help decarbonize the medium- and heavy-duty vehicle sector, which includes delivery vans, buses and certain long-haul freight trucks.
Canada’s Green Freight Program
From 2018 to 2022, Natural Resources Canada administered the Green Freight Assessment Program (GFAP), investing $3.4 million to support freight companies in decarbonizing their operations. Building on this momentum, the GFAP was recapitalized through Budget 2022 and renamed as the Green Freight Program. The investment will help fleets reduce their fuel consumption and GHG emissions from on-road freight through fleet energy assessments, fleet retrofits, engine repowers, best-practice implementation and the purchase of low-carbon vehicles.
The first call will seek project proposals under the nearly $200-million Green Freight Program to help fleets reduce their fuel consumption and GHG emissions. Successful applicants could each receive grants of up to $250,000 toward fleet assessments and retrofits.
ZEV Awareness Initiative — Medium- and Heavy-Duty Stream
The second call for proposals will focus on awareness and education projects through the Zero-Emission Vehicle Awareness Initiative’s (ZEVAI) new medium- and heavy-duty stream. This expansion of the Awareness Initiative will support outreach, education and capacity-building projects related to low-emission and zero-emission medium- and heavy-duty vehicles (MHDV). By addressing low levels of awareness and confidence among businesses and fleet owners, ZEVAI projects will support more widespread adoption of these vehicles, further driving the decarbonization of the MHDV sector across the country.
Both calls for proposals will be open to applicants on December 12 on Natural Resources Canada’s website. These investments will help drivers save money at the pump while contributing to Canada’s fight against climate change.
Through these new initiatives, the federal government is helping businesses save money, reduce pollution and decarbonize the fleet of today as they prepare for the adoption of the zero-emission vehicles of the future.
“Today, I joined truckers in Mississauga to announce Canada’s Green Freight Program, which will help support the trucking industry on the road to a net-zero future. By investing in fleet-wide solutions, the Government of Canada is supporting truckers in reducing emissions while maintaining our vital supply chains and getting Canadians the products they need on time. I also announced that the ZEV Awareness Initiative is being expanded to include medium- and heavy-duty vehicles. Whether they are consumers or truck drivers, folks across Canada are making the switch to cleaner options that also save them money at the pump.”
The Honourable Omar Alghabra
Minister of Transport
“Canada is making strides on reducing emissions from transportation as part of our efforts to build a prosperous net-zero economy. This month, we are launching calls for proposals for the Green Freight Program and the expanded ZEV Awareness Initiative. This is how we are making progress on greening our commercial fleets as Canadian drivers access sustainable options to save money on gas while reducing emissions.”
The Honourable Jonathan Wilkinson
Minister of Natural Resources
“The trucking industry is a vital source of good jobs in Mississauga and across Canada. By supporting truckers in retrofitting their fleets to ZEVs, our federal government is supporting a bright future in this industry. Today’s announcement will ensure that the people who keep our supply chain running are also at the forefront of our fight for a sustainable future for generations to come.”
Member of Parliament for Mississauga–Streetsville
- These programs build on Minister Alghabra’s announcement of the Incentive for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program in July. This incentive reduces emissions by helping businesses and communities across the country make the switch to zero-emission vehicles.
- Transportation accounts for 25 percent of total greenhouse gas emissions in Canada.
- Medium- and heavy-duty vehicles are those weighing more than 8,500 lbs., including large pickup trucks, delivery vans, refuse trucks, buses and long-haul freight trucks (Class 2B to 8).
- Transport Canada’s iMHZEV Program is expected to result in annual greenhouse gas emission reductions of up to 200,000 tonnes per year in 2026, growing to 3 million tonnes per year by 2030.
- Fifty-eight percent of Canadians have never ridden in or driven an EV, but 79 percent would be interested in taking a ZEV for a test drive.
- By 2040, 100 percent of medium- and heavy-duty vehicles sold in Canada will be ZEVs, where feasible.
- To date, over 150,000 Canadians and Canadian businesses have taken advantage of federal incentives to purchase a zero-emission vehicle.
- Since 2016, Canada has invested over $1 billion to make electric vehicles (EVs) more affordable and chargers more accessible for Canadians. These investments are supporting the establishment of a coast-to-coast network of chargers in local areas where Canadians live, work and play, while federal rebates of up to $5,000 are helping more Canadians make the switch to an EV.
- Green Freight Assessment Program
- Zero-Emission Vehicle Awareness Initiative
- Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program
- 2030 Emissions Reduction Plan: Clean Air, Strong Economy
- Electric Charging and Alternative Fuelling Stations Locator
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