CTA Welcomes Government of Canada Approach to Environmental Regulatory Development & Use of Environmental Financial Incentives for the Trucking Industry

The Government of Canada announced today its 2030 Emissions Reduction Plan, which includes a strategy to reduce emissions from medium- and heavy-duty commercial vehicles (MHDV) through sales requirements by 2030, with nearly $800 million worth of incentives and retrofits for large trucks. Exact details regarding incentives and the eligible technologies are expected in the upcoming budget.

Today’s announcement recognized CTA’s longstanding message that, unlike light-duty vehicles and certain medium duty applications,  significant engine technology innovation is required for the long-haul trucking sector to shift from current diesel engine technology. The Canadian Trucking Alliance (CTA) has continued to communicate this fact to federal officials.

In briefings today with all stakeholders, federal officials indicated this regulatory process will be a collaborative and iterative approach, with interim steps taken to ensure emerging technologies are developed to work operationally and are feasible for the trucking sector, with the ability to change or adapt to these targets in partnership with industry.

“Like all sectors of the economy, the trucking industry must do its part to reduce carbon emissions,” said CTA President Stephen Laskowski. “The challenge our sector faces, particularly the long-haul portion of the industry, are technology barriers preventing the introduction of alternatives to the diesel engine. Today’s announcement ensuring stakeholder engagement and feasibility criteria for future MHDV regulatory developments in Canada is strongly supported by CTA, as are the incentives for fleets wanting to invest in additional improvements to their current green fleet technology designed to improve tractor/trailer fuel efficiency performance.”

Contained in today’s announcement were several significant incentives to help accelerate the adoption of low-carbon vehicles in the MHDV sector like research and innovation opportunities totalling nearly $800 million dollars, including:

• $547.5 million purchase incentive program for MHDVs. Purchase eligibility date will be announced in Budget 2022;

• $199.6 million to retrofit large trucks currently on the road;

• $33.8 million for hydrogen trucking demonstration projects that address barriers to long-haul zero-emission trucking commercialization – including technical, regulatory and standards challenges.

Prior to today’s announcement, CTA has also worked closely with government officials on the creation of a carbon reduction equipment fund to provide significant incentives to increase the adoption of lower carbon technologies and continue piloting the feasibility of new technologies like the hydrogen truck pilot project which was conducted with the Alberta Motor Transport Association.

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