The transport sector is an important part of the Government of Canada's plan to achieve net-zero emissions by 2050.¹

In Canada, the sector is responsible for 25% of all greenhouse gas (GHG) emissions.² Commercial vehicles account for 20% of all vehicles in Canada, but generate more than 60% of the country's road transport emissions.

The federal 2030 Emissions Reductions Plan calls for new policies, subsidies, and infrastructure investments to incentivize emissions-reducing technology and fuel- switching, specifically targeting commercial vehicles.¹ This focus reflects the fact that decarbonizing a commercial vehicle has a greater impact on emissions reductions than doing so on a passenger vehicle: a commercial vehicle can emit up to 21 times more CO₂ than a light-duty passenger vehicle.

Electric vehicles (EVs) are expected to play a significant role in enabling companies to decarbonize their commercial fleets and reduce emissions at a competitive cost. According to the International Energy Agency's projections, EVs will comprise nearly 100% of commercial vehicle sales by 2050 in a net-zero scenario-compared to just 0.1% in 2020.³

¹ Government of Canada, Canada's 2030 Emissions Reduction Plan, June 22, 2022

² United Nations Framework Convention on Climate Change (UNFCCC), Canada 2021 National Inventory Report (NIR), April 12, 2021.

³ International Energy Agency (IEA), Global Energy Review 2021, April 2021