Federal incentives announced for purchasing larger zero-emission vehicles

New money from the federal government is making it more affordable for businesses and communities to switch to zero emission vehicles.

"We want to make zero-emission vehicles more affordable and accessible to Canadian businesses," said Transport Minister Omar Alghabra at anannouncementin London, Ont., Monday morning.

The incentive program for medium- and heavy-duty zero-emission vehicles, also callediMHZEVs, means the federal government will cover about50 per cent of the price difference between a traditional and electric vehicle.

The program, which comes into effect Monday,could mean savings of up to $200,000 per vehicle and can also be used in conjunction with any other provincialincentives.

Delivery vans, coach buses, school buses, waste management trucks and ambulances are included among theeligible vehicles.

Reducing carbon emissions on the roads

"In Canada, medium- and heavy-duty vehicles are a big, big source of pollution on our roads," said Alghabra.

A two-yearstudyat the University of Toronto found large trucks are the most significant contributor to black carbon emissions along major roadways.

"The idea is to make sure that it helps us get to our target of 100 per cent zero-emission vehicles for medium- and heavy-duty by 2040, so everyone who wants to buy these vehicles would be eligible to benefit from those incentives," he said.

"It is expected that these new incentives will reduce annual emissions by up to 200,000 tonnes in 2026 and up to 3 million tonnes by 2030."

The four-year $550-million program comes as the next step in theIncentives for Zero-Emission Vehicles Programfor cars, minivans, trucks and SUVs.

Announcement welcomed by EV sector

The announcement comes as good news to leaders in the electric transportation sector.

"Electric vehicles and zero-emission vehicles go far beyond cars," said Daniel Breton, president and CEO of Electric Mobility Canada.

"Today's announcement marks a new and important step toward decarbonizing transport while creating high quality, sustainable jobs for Canadians."