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New Federal Call for Proposals to Decarbonize On-Road Transportation

Press Release

From: Natural Resources Canada

May 25, 2023

Major economies around the world are moving at a rapid pace to fight climate change and build the net-zero industries of tomorrow. The Government of Canada is committed to accelerating the development of new technologies that will help build a clean energy future while making life more affordable, creating good jobs and supporting a strong, competitive and resilient economy.

Today, Julie Dabrusin, Parliamentary Secretary to the Minister of Natural Resources and to the Minister of Environment and Climate Change, on behalf of the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced a new call for proposals to support research, development and demonstration (RD&D) projects that will help lower or eliminate emissions from the on-road transportation sector.

Funded under Canada’s Energy Innovation Program, projects selected through this call will address barriers to the demonstration and deployment of low- or zero-emission medium- and heavy-duty vehicles (MHDVs), such as by improving the energy efficiency of vehicles through using advanced materials to reduce weight or developing more cost-effective, high-performance technologies such as hydrogen fuel cells and electrical powertrains.

Further, the call will support infrastructure solutions that aim to improve the transportation system’s overall efficiency and increase the adoption of zero-emission vehicles. This includes the development or demonstration of affordable charging solutions for multi-unit buildings and improving the reliability of electric vehicle chargers in extreme cold weather.

Successful applicants could each receive contributions of up to 75 percent of total eligible costs for research and development projects with a maximum funding contribution up to $1.5 million. For demonstration projects, up to 50 percent of total eligible project costs may be covered, with a maximum funding contribution of up to $5 million.

The call also offers access to funding for Indigenous organizations and includes flexibilities for applicants to submit and start their projects. Successful Indigenous applicants could request a contribution comprising up to 100 percent of total project costs, subject to the same maximum dollar amount under both project categories. Additional details on eligibility are available in the Applicant Guide.

The application process will remain open until July 20, 2023. Successful applicants will be invited to submit full project proposals in the fall.

This call is another step the government is taking to fight climate change. Canada will continue to invest in the most innovative technologies that will provide sustainable jobs and economic growth while supporting climate goals.


“Today’s call for proposals under the Energy Innovation Program is an important step toward the decarbonization of Canada’s transportation sector. As Canada deploys thousands of electric vehicle chargers and invests in modernizing our electrical grids, we are working with industry partners to scale clean technology solutions to drive down transportation emissions while building a sustainable and prosperous economy.”

The Honourable Jonathan Wilkinson

Minister of Natural Resources

“The Government of Canada is supporting Canadian businesses and communities to take climate action by reducing emissions in the transportation sector and deploying clean technology solutions. This call for applications will help scale research and development while supporting energy efficiency in the transportation sector across Canada.”

Julie Dabrusin

Parliamentary Secretary to the Minister of Natural Resources

and to the Minister of Environment and Climate Change

“Through smart investments in clean energy technologies, we are building sustainable transportation infrastructure that benefits all Canadians. The Energy Innovation Program advances new technologies to reduce pollution and to protect the environment and well-being of our communities, helping deliver commitments made in Canada’s Action Plan for Clean On-Road Transportation while also supporting net-zero emissions by 2050.”

The Honourable Omar Alghabra

Minister of Transport

Quick facts

  • On-road transportation accounts for about 17 percent of Canada’s total greenhouse gas emissions.
  • Freight transportation accounts for over five percent of Canada’s overall emissions.
  • MHDVs are those weighing more than 8,500 lbs., including large pickup trucks, delivery vans, refuse trucks, buses and long-haul freight trucks (Class 2B to 8).
  • The Energy Innovation Program advances clean energy technologies that will help Canada meet its climate change targets while supporting the transition to a low-carbon economy. It funds research, development and demonstration projects, as well as other related scientific activities.
  • Federal investments are supporting the establishment of a coast-to-coast charging network along highways, and the deployment of chargers with over 34,500 EV chargers selected for funding to date.
  • By 2040, 100 percent of medium- and heavy-duty vehicles sold in Canada will be zero-emission vehicles, where feasible.
  • This funding is complimentary to the calls for proposals for the Green Freight Program and the Zero-Emission Vehicle Awareness Initiative’s medium- and heavy-duty stream, which were launched in December 2022.
  • Budget 2023 included a suite of historic clean investment tax credits to grow Canada’s clean economy and create and secure tens of thousands of good middle-class jobs. Since 2022, Canada has attracted historic investments across its electric vehicle supply chain – from mining to manufacturing – and secured or created over 18,000 jobs in the process.

Associated links


Natural Resources Canada
Media Relations

Keean Nembhard
Press Secretary
Office of the Minister of Natural Resources


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