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Tuesday, March 21, 2023

New federal incentives for zero-emission business autos 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 Vitality Canada, made the next assertion in response to the federal authorities’s announcement of the new Incentives for Medium- and Heavy-Responsibility Zero-Emission Automobiles Program:

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

“The transportation sector is the second largest supply of emissions in Canada, and business autos make up greater than a 3rd of that. Introducing an incentive program is without doubt one of the only methods to get extra battery electrical, plug-in hybrid, and gasoline cell electrical business autos on Canada’s roads. The federal authorities’s related rebate for passenger autos has persuaded many Canadians to make the swap to electrical autos, and now companies will discover it simpler than ever to affect their fleets, as properly.  

“The brand new incentives will reduce emissions, save fleet house owners cash, and help key Canadian manufacturing and export alternatives. Canada is dwelling 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 lots of our suggestions had been included within the coverage’s design, which contains numerous finest practices from different jurisdictions which have put related incentive applications in place. The truth is, Canada is following within the tire tracks of a minimum of 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 boundaries. 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 autos are in the stores.

“Along with good coverage design, the federal authorities ought to be recommended for the velocity at which this system was designed and rolled out. Local weather change is just not 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 complete emission, with heavy-duty fuel and diesel autos accounting for 37% of that.
  • Canada’s Emissions Discount Plan commits to “launch[ing] an built-in technique to cut back emissions from medium-and heavy-duty autos (MHDVs) with the intention of reaching 35% of complete 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 varieties based mostly on feasibility, with interim 2030 regulated gross sales necessities that may range for various car classes based mostly on feasibility, and discover interim targets for the mid-2020s.”
  • The federal Funds 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 Automobiles (iMHZEV) Program
  • This system is efficient as of July 11, 2022, however incentive requests for reimbursement aren’t anticipated to be obtainable till Fall 2022.
  • The incentive ranges supplied are based mostly on the category of the car, with heavier autos receiving bigger incentives. The incentives intention to cowl roughly 50% of the value distinction between an electrical car and a standard 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 Vitality’s Different Fuels Information Middle, a minimum of 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 Venture 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 Vitality Canada’s submission to Transport Canada | Incentives for Medium and Heavy Responsibility Zero Emissions Automobiles Program

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