Canada is falling behind its global peers in the shift to zero-emission heavy-duty vehicles, a recent report from Clean Energy Canada says.

While countries like the U.S. and those in the European Union accelerate their transitions, only 2% of new trucks and buses sold in Canada in 2023 were zero-emission, compared to 9% globally. California leads with 17% of new commercial vehicle sales coming from zero-emission models, while the EU has set ambitious emissions standards for heavy-duty vehicles.

The report suggests that Canada’s focus has been primarily on electric passenger cars, overlooking the commercial vehicle sector, which has a disproportionate impact on emissions. Although these vehicles account for just 17% of Canada’s total vehicle stock, they are responsible for 37% of the country’s transport emissions.

A spotlight on the economic benefits of electrification highlights that demand-driven policies could boost local manufacturing and help Canadian companies scale up and export. A 2022 Clean Energy Canada study estimated that achieving 35% zero-emission medium- and heavy-duty sales in Canada by 2030 could contribute $829 million to the country’s GDP and create 6,800 jobs.

The industry is already responding to the opportunities presented by zero-emission vehicles, with the number of manufacturers offering such vehicles across North America nearly tripling between 2020 and 2023. However, the speed of adoption in Canada remains slow, according to the report.

Clean Energy Canada references a 2021 Lawrence Berkeley National Lab study, which found that an electric semitruck with a 375-mile range could achieve a 13% lower total cost of ownership compared to a diesel model, saving $200,000 over its 15-year lifetime. Though the initial sticker price for electric trucks has yet to reach cost parity with diesel, federal and provincial incentives are helping offset these costs.

In addition to the economic potential, the environmental and public health benefits are significant. In Metro Vancouver, for instance, nitrogen oxide emissions more than double on weekdays due to commercial traffic, and across Canada, 15,300 premature deaths per year are linked to air pollution, with vans and trucks being major contributors.

Clean Energy Canada stresses the need for stronger policies to accelerate the transition and leverage Canada’s existing strengths. With at least seven clean bus and truck manufacturers already headquartered in Canada, alongside key players in hydrogen fuel cell technology, the country has the potential to lead in zero-emission vehicle production and export—if it can move quickly enough.

Federal and provincial initiatives supporting the transition

Federal and provincial governments have rolled out various programs to support the adoption of zero-emission medium- and heavy-duty vehicles (MHDVs).

At the federal level, the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program offers rebates ranging from $10,000 to $200,000, helping bridge the cost gap between diesel and electric vehicles. Small businesses also benefit from a tax incentive that allows them to write off up to 100% of the purchase price of qualifying electric freight trucks.

To support fleet electrification, the Zero-Emission Vehicle Infrastructure Program (ZEVIP) provides grants for charging infrastructure installation. However, the program has seen limited uptake from MHDV fleets due to its exclusion of essential costs like grid connection and electrical infrastructure upgrades.

Provinces like Quebec and British Columbia have introduced their own programs to accelerate adoption.

Quebec’s Eco-cammionage Program offers up to $175,000 per vehicle, with additional benefits if the technology is locally manufactured. The province also supports charging infrastructure through the Transportez Vert Program, which covers 50% of eligible expenses. British Columbia provides post-purchase incentives through its Commercial Vehicle Pilot Program and Go Electric Program, along with rebates for telematics, electrical upgrades, and fleet planning through the Go Electric Fleet Charging Program.

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