Canada Drives Innovative Technology to Reduce Emissions From Commercial Transportation Fleets

TORONTO, July 30, 2025 /CNW/ - Canada is accelerating innovation in emerging clean technologies that will make it easier for businesses to transition to low-carbon choices and helping Canada's largest city modernize its fleets.

Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, on behalf of the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced more than $21 million for nine research, development and demonstration projects to reduce greenhouse gas emissions from Canada's transportation sector.

The cutting-edge technology in these projects aim to save money and reduce greenhouse gas emissions for businesses by improving system efficiency, making it easier to switch to zero-emissions vehicles and addressing technical and market barriers for medium- to heavy-duty vehicles that have low or zero emissions.

These projects are funded through Natural Resources Canada's Energy Innovation Program On-road Transportation Decarbonization call for proposals, which targets the most impactful technologies to maximize economic and environmental outcomes.

Minister Solomon also announced a $4.97-million investment for the City of Toronto to transition 60 of its waste-collection vehicles to operate with a hybrid electric-compressed natural gas system. This innovative conversion drastically reduces emissions, fuel consumption and operational noise without disrupting the vehicle's performance.

This project is funded under the Green Freight Program fleet modernization stream, which funds repowering existing vehicles, purchasing low-carbon alternative-fuel vehicles and implementing logistical best practices that make the transportation industry more efficient.

Quotes

"We are taking bold steps to make Canada an energy superpower. Through these projects, Canadian innovators are creating and commercializing the emerging technologies we need for clean, sustainable transportation for our future. We're investing in Canadian ideas to accelerate emissions reductions from medium- and heavy-duty vehicles, which strengthens our supply chains and energy independence. We're also delivering practical, on-the-ground solutions as we drive the transition to zero-emissions fleets in Canada's largest city, Toronto."  

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

"With today's announcement, we're not just investing in technology — we're powering a new era of smarter, more-sustainable transportation for Toronto. Sixty municipal waste trucks are becoming testaments to innovation: quieter on our streets, lighter on fuel, lower on emissions. We're enabling homegrown breakthroughs — right here in the GTA and southwestern Ontario — that are driving electric vehicle performance, safety and reliability in uniquely Canadian conditions. From bustling city routes to subzero winters, this is how we move our cities, and our country, forward."

The Honourable Evan Solomon
Minister of Artificial Intelligence and Digital Innovation

"It's an exciting time to take advantage of technologies that can reduce emissions and bring our fleet of vehicles into the future. We thank the Government of Canada for its partnership as Toronto continues to find ways to make our city greener, while maximizing the economic benefits of this type of technology."

Her Worship Olivia Chow,
Mayor of the City of Toronto

Quick Facts

• The Energy Innovation Program (EIP) advances clean energy technologies that will help Canada maintain a competitive, reliable and affordable energy system while transitioning to a low-carbon economy.
• Transportation accounts for about a quarter of Canada's greenhouse gas emissions.
• The Green Freight Program helps fleets reduce fuel costs and emissions through vehicle repowering, the purchase of low-carbon alternative fuel vehicles and the implementation of logistical best practices to improve fuel efficiency.

Related Products

• Backgrounder: Canada Drives Innovative Technology to Reduce Emissions From Commercial Transportation Fleets

Associated Links

• Energy Innovation Program – On-road Transportation Decarbonization Call for Proposals  
• Green Freight Program 
• Funding is available for fleet energy assessments and truck/trailer equipment retrofits

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SOURCE Natural Resources Canada

Contacts: Natural Resources Canada, Media Relations, 343-292-6096, [email protected]; Greg Frame, Office of the Minister of Energy and Natural Resources, [email protected]