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New federal incentives for zero-emission industrial automobiles will put a much-needed dent in Canada’s excessive transportation emissions

Photograph by: TruckPR through CC BY-NC-ND 2.0

OTTAWA — Joanna Kyriazis, clear transportation program supervisor at Clear Power Canada, made the next assertion in response to the federal authorities’s announcement of the new Incentives for Medium- and Heavy-Responsibility Zero-Emission Autos Program:

“We welcome the federal authorities’s new incentives for medium- and heavy-duty automobiles, akin to supply vans, rubbish vans, and long-haul vans.

“The transportation sector is the second largest supply of emissions in Canada, and industrial automobiles make up greater than a 3rd of that. Introducing an incentive program is likely one of the best methods to get extra battery electrical, plug-in hybrid, and gasoline cell electrical industrial automobiles on Canada’s roads. The federal authorities’s related rebate for passenger automobiles has persuaded many Canadians to make the change to electrical automobiles, and now companies will discover it simpler than ever to affect their fleets, as properly.  

“The brand new incentives will lower emissions, save fleet house owners cash, and assist key Canadian manufacturing and export alternatives. Canada is residence to a number of main zero-emission truck producers, together with Quebec-based Lion Electrical, which already has an settlement in place to provide Amazon with 1000’s of medium-duty electrical vans.

“We’re particularly happy that a lot of our suggestions have been included within the coverage’s design, which contains a variety of greatest practices from different jurisdictions which have put related incentive packages in place. In truth, Canada is following within the tire tracks of not less than seven U.S. states with related techniques. 

“By way of subsequent steps, the brand new program should be a part of a broader zero-emission medium- and heavy-duty coverage package deal that addresses each demand and provide limitations. This package deal ought to embrace charging incentives to assist fleet operators deploy charging infrastructure alongside a automobile gross sales mandate to make sure sufficient automobiles are available for purchase.

“Along with good coverage design, the federal authorities must be recommended for the velocity at which this system was designed and rolled out. Local weather change isn’t slowing down, and our coverage response shouldn’t both.”


  • Canada’s transportation sector is the second-biggest emitter in Canada, making up 24% of the nation’s whole emission, with heavy-duty gasoline and diesel automobiles accounting for 37% of that.
  • Canada’s Emissions Discount Plan commits to “launch[ing] an built-in technique to scale back emissions from medium-and heavy-duty automobiles (MHDVs) with the purpose of reaching 35% of whole MHDV gross sales being ZEVs by 2030” and “develop[ing] a MHDV ZEV regulation to require 100% MHDV gross sales to be ZEVs by 2040 for a subset of car varieties primarily based on feasibility, with interim 2030 regulated gross sales necessities that may differ for various automobile classes primarily based on feasibility, and discover interim targets for the mid-2020s.”
  • The federal Price range 2022 put aside $547.5 million over 4 years (or till obtainable funding is exhausted) for the Incentives for Medium- and Heavy-Responsibility Zero-Emission Autos (iMHZEV) Program
  • This system is efficient as of July 11, 2022, however incentive requests for reimbursement will not be anticipated to be obtainable till Fall 2022.
  • The incentive ranges provided are primarily based on the category of the automobile, with heavier automobiles receiving bigger incentives. The incentives purpose to cowl roughly 50% of the value distinction between an electrical automobile and a standard automobile.  Public transit and college transportation are excluded from this program given their protection in different federal incentive packages.
  • Based on the U.S. Division of Power’s Different Fuels Information Heart, not less than seven U.S. states have some type of MHDV incentive program, together with California, Illinois, Massachusetts, New York, New Jersey, Vermont and Virginia. California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Undertaking has helped to deploy greater than 3,000 zero-emission vans and buses since 2010, with 61% of all zero-emission vans deployed within the U.S. having gone to California.


Clear Power Canada’s submission to Transport Canada | Incentives for Medium and Heavy Responsibility Zero Emissions Autos Program



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