Despite making up only 17% of Canada’s total vehicle stock, medium- and heavy-duty vehicles (Class 3 to 8 vehicles, or MHDVs) currently account for over 37% of vehicle-related greenhouse gas emissions. While emissions from passenger cars are declining, emissions from trucks and buses are trending upwards and are expected to bypass those from passenger cars by 2030.
It is thus increasingly urgent that the federal government better address the sector’s rising levels of carbon pollution, accelerating the transition to zero- emission MHDVs (ZE-MHDVs). However, there is as yet no concrete, implementable plan that outlines how this transition will take place. Modeling shows that while the federal government’s current suite of climate policies and programs are necessary, more action is needed to advance the transition to ZE-MHDVs at the pace required to hit the federal government’s zero-emission targets.
A whole-of-government effort is needed, including a sales mandate, an infrastructure roadmap for Canada’s highways, and clear guidelines and regulations for vehicle manufacturers and fleet operators, plus incentives for demonstration projects. The Canadian Trucking Alliance and similar organizations are advocating for an extension of the Accelerated Investment Incentive to incentivise capital investments.
One particularly critical area for creating market certainty for vehicle manufacturers and building out economies of scale is: private depot charging infrastructure.
Recommended Investment [NRCan]:
Enhance the Zero Emission Vehicle Infrastructure Program (ZEVIP) to further support private depot charging infrastructure: $325 million over three years
To assist fleet operators with the transition and fill in the gaps with private and public funding for charging infrastructure, we recommend an increase in funding through the ZEVIP from the current $680 million through 2027 to $1.05 billion. This would further build out infrastructure to support the number of ZE-MHDVs needed to meet the target of 35% ZE sales by 2030.