Transport Canada Introduces New Incentive for Zero-Emission Medium and Heavy Duty Vehicles | Globalnews.ca

Transport Canada has launched a new incentive to make it easier for businesses across Canada to purchase zero emission vehicles.

On Monday, Transport Minister Omar Alghabra was at the Fraunhofer Innovation Platform for Composites Research in southeast London to announce the program for zero-emission medium and heavy vehicles.

The program provides “incentives worth approximately 50 percent of the price difference between an electric vehicle and a traditional vehicle, ranging from $10,000 to $200,000, depending on the type of vehicle applicants apply for.

“In Canada, medium and heavy duty vehicles are a huge source of pollution on our roadways. Many Canadian businesses want to help reduce pollution by making the switch to a zero-emission vehicle, and our government is committed to ensuring that, where possible, 100% of medium and heavy-duty vehicle sales are zero-emission to 2040,” Alghabra said.

“This new program will help Canadian businesses, organizations and governments make the switch to medium and heavy-duty vehicles.”

Alghabra said the government is investing nearly $550 million through the program to help companies make the switch.

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The incentive will be applied at the point of sale by a dealer or other authorized sellers, such as original equipment manufacturers and vehicle finishers and dealers.

The government said it would appear directly on the bill of sale or lease for eligible medium- and heavy-duty ZEVs purchased or leased on or after the vehicle’s eligibility date.

Applications to apply for the incentive will be available in the coming months, and rebate applications will be available in the fall of 2022.

To be eligible under the program, the vehicle must meet all Canadian Motor Vehicle Safety Standards and be designed for use on public streets, highways and highways, and the applicant must be a registered Canadian business based in Canada.

Zero-emission vocational on-highway trucks, such as garbage or dump trucks, will be eligible for the incentive, as will yard/shunt and haul trucks. Zero emission shuttle buses or coaches will also be eligible.

But not all medium or heavy-duty vehicles are included, and Transport Canada says it can exclude certain types of vehicles like transit buses, school buses, RVs or ATVs.

The transportation agency said only new vehicles are eligible for the incentive, and the funds are not available to those looking to convert an existing internal combustion engine vehicle into a zero-emission vehicle.

Daniel Breton, President and CEO of Electro Mobility Canada, said the incentive is a great way to push Canada to reduce a lot of greenhouse gas emissions and create sustainable jobs for Canadians.

“Medium and heavy vehicles contribute to black carbon and nitrogen emissions. To give you an example, between Monday and Saturday, diesel trucks on the road emit approximately 80 percent of black carbon emissions, while they make up only one percent of the vehicles on the road,” Breton said.

“Electric vehicles and zero-emission vehicles go far beyond cars, and we are pleased to see attention being paid to the transition from heavy and medium-duty vehicles to electric transit vehicles, school buses, trucks, marine vehicles , off-road vehicles and soon we will see zero emission planes”.

With files from Andrew Graham of Global News