Tuesday, February 14, 2023
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New federal incentives for zero-emission business automobiles will put a much-needed dent in Canada’s excessive transportation emissions

Photograph by: TruckPR by way of 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-Obligation Zero-Emission Automobiles Program:

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

“The transportation sector is the second greatest supply of emissions in Canada, and business automobiles make up greater than a 3rd of that. Introducing an incentive program is among the best methods to get extra battery electrical, plug-in hybrid, and gas cell electrical business automobiles on Canada’s roads. The federal authorities’s comparable rebate for passenger automobiles has persuaded many Canadians to make the swap 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 help 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 produce Amazon with hundreds of medium-duty electrical vehicles.

“We’re particularly happy that a lot of our suggestions have been included within the coverage’s design, which includes quite a lot of greatest practices from different jurisdictions which have put comparable incentive applications in place. The truth is, Canada is following within the tire tracks of at the very least seven U.S. states with comparable techniques. 

“When it comes to subsequent steps, the brand new program have to 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 car gross sales mandate to make sure sufficient automobiles are that can be purchased.

“Along with good coverage design, the federal authorities must be counseled for the pace at which this system was designed and rolled out. Local weather change just 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 fuel 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 auto sorts primarily based on feasibility, with interim 2030 regulated gross sales necessities that will differ for various car classes primarily based on feasibility, and discover interim targets for the mid-2020s.”
  • The federal Finances 2022 put aside $547.5 million over 4 years (or till accessible funding is exhausted) for the Incentives for Medium- and Heavy-Obligation Zero-Emission Automobiles (iMHZEV) Program
  • This system is efficient as of July 11, 2022, however incentive requests for reimbursement will not be anticipated to be accessible till Fall 2022.
  • The incentive ranges provided are primarily based on the category of the car, with heavier automobiles receiving bigger incentives. The incentives purpose to cowl roughly 50% of the worth distinction between an electrical car and a conventional car.  Public transit and faculty transportation are excluded from this program given their protection in different federal incentive applications.
  • In response to the U.S. Division of Power’s Different Fuels Knowledge Heart, at the very least 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 vehicles and buses since 2010, with 61% of all zero-emission vehicles deployed within the U.S. having gone to California.


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


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