Canada’s federal government has announced C$97.3 million (almost US$72 million) in new funding for clean transportation projects across the country. It was announced by Natural Resources Canada and other federal departments. The money will support 155 projects in provinces and territories nationwide.
The investment aims to expand electric vehicle (EV) charging, help freight fleets reduce emissions, and increase public awareness of clean transportation.
The Honourable Julie Dabrusin, Minister of Environment and Climate Change and Nature, stated,
“We are making it easier, cleaner, and more affordable for Canadians to get where they need to go by investing in new EV charging infrastructure… Making the switch to an electric vehicle reduces greenhouse gas emissions, and with the EV Affordability Program, drivers can save up to $5000, making EVs more accessible for Canadians to go electric.”
Transportation is Canada’s largest source of greenhouse gas emissions. According to Environment and Climate Change Canada, transport accounted for about 22–25% of national emissions in 2023, totaling almost 157 million tonnes of CO₂ equivalent. Passenger vehicles and freight trucks make up most of these emissions.
Reducing transport emissions is key to Canada’s goal of reaching net-zero emissions by 2050.
Charging Ahead: Billions Flow Into EV Infrastructure
The biggest part of the C$97.3 million package, C$84.4 million, will support EV charging infrastructure. This funding comes from Canada’s Zero Emission Vehicle Infrastructure Program (ZEVIP). It will support 122 projects that will install more than 8,000 new EV chargers across the country.
Canada already has more than 30,000 public charging ports installed, according to Natural Resources Canada. The new chargers will expand coverage in cities, rural areas, highways, workplaces, and multi-unit residential buildings.
Some major recipients include:
- Pollution Probe Foundation: C$7.3 million for 495 chargers.
- Manitoba Motor Dealers Association: C$6.5 million for up to 520 chargers.
- DP World Canada: C$4.375 million for 111 chargers.
- Purolator Inc.: C$2.575 million for 393 chargers.
Municipalities such as Calgary, Vancouver, Regina, Kelowna, Mississauga, and St. John’s are also receiving funding.
The federal government has set a target for 100% of new light-duty vehicle sales to be zero-emission by 2035. Expanding charging infrastructure supports this goal and helps reduce range concerns for drivers.
Greening the Freight Network
The announcement also includes C$5.7 million for three projects under the Green Freight Program. Medium- and heavy-duty trucks play a major role in freight transport. These vehicles consume large amounts of diesel fuel and produce significant emissions.
The Green Freight funding will help fleets with the following:
- Upgrade engines and vehicles,
- Improve fuel efficiency,
- Adopt low-carbon technologies, and
- Improve logistics planning.
Freight trucks represent about 37% of Canada’s transportation emissions, according to federal data. Cutting fuel use in this segment can reduce both operating costs and carbon output.
These projects aim to improve fleet performance while supporting Canada’s broader climate targets.
Education and Indigenous-led Initiatives in the EV Shift
The remaining C$7.2 million will support 30 education and awareness projects across Canada. These initiatives will provide information about EV adoption, charging technology, and clean fuels. They will also help train workers in EV infrastructure installation and maintenance.
Of the 30 projects, 11 are Indigenous-led. These projects focus on increasing awareness and access to clean transportation in Indigenous communities and northern regions.
Activities in this program include:
- Community test-drive events
- Skills training workshops
- Public outreach on clean fuel options
The advocates believe that education helps build confidence in electric mobility and supports long-term adoption.
Part of a Bigger National Electrification Push
The C$97.3 million funding is part of Canada’s broader Automotive Strategy and National Charging Infrastructure Strategy, announced in early 2026.
In addition to this funding, the Canada Infrastructure Bank (CIB) increased its charging and hydrogen refueling program by C$1 billion. This brings the total funding in that initiative to C$1.5 billion. The CIB program aims to support up to 5,400 new public fast-charging stations across the country.
The government also continues to provide purchase incentives for zero-emission vehicles. Federal rebates of up to C$5,000 are available for eligible EV buyers under existing programs.
Together, these measures aim to reduce emissions while strengthening Canada’s auto sector and supply chains. More so, the sector’s GHG emissions keep rising again post-COVID 19 pandemic.
Supporting Canada’s Net-Zero and 2035 ZEV Targets
This funding supports Canada’s national climate targets. The federal government plans to cut emissions by 40–45% from 2005 levels by 2030. It also aims for net-zero emissions by 2050.
This commitment is part of the Canadian Net-Zero Emissions Accountability Act. Transportation is the biggest source of emissions in the country, and so cutting vehicle emissions is key to reaching these goals.
Canada has set rules for new light-duty vehicles. By 2035, all sales must be zero-emission. There are interim goals of 20% by 2026 and 60% by 2030. Expanding EV charging helps meet those sales targets by making electric vehicles more practical for drivers across urban and rural areas.
Also, the federal government has set national infrastructure targets of deploying 84,500 EV chargers and 45 hydrogen refueling stations by 2029. These targets aim to ensure that charging and refueling networks grow in step with rising zero-emission vehicle adoption across the country.
Cleaner freight projects also support Canada’s broader plan to cut emissions from medium- and heavy-duty vehicles. The C$97.3 million funding supports Canada’s long-term move to a lower-carbon transportation system. It combines infrastructure investment, fleet upgrades, and education programs.
Closing the Emissions Gap in Transport
Transportation emissions remain high in Canada. Power plant emissions have fallen in recent years, but transport emissions have been slower to drop.
Electric vehicles produce zero tailpipe emissions. Canada’s electricity grid is about 83% non-emitting. So, when powered by it, EVs can greatly reduce carbon output. Heavy-duty vehicle upgrades and freight efficiency improvements also provide measurable reductions.
The new C$97.3 million funding helps close infrastructure gaps and prepares communities for increased EV adoption. It also sends a signal to private investors. Public funding often helps unlock additional private capital in clean energy and infrastructure projects.
Moreover, the installation of 8,000 new chargers will increase national charging coverage. Freight modernization projects will reduce diesel use, while education programs will improve awareness and workforce skills.
These steps support Canada’s commitment to reducing emissions by 40–45% below 2005 levels by 2030, while moving toward net-zero by 2050.
The C$97.3 million investment is one part of a broader national effort. As charging networks grow and fleets modernize, Canada’s transportation sector may gradually lower its carbon footprint. Further policy support, infrastructure development, and private investment will determine the pace of that transition.
- READ MORE: From Now to 2060: How Canada’s SMRs and Maritime Nuclear Power Will Drive a Net-Zero Future
The post Canada Invests C$97M to Supercharge EV Charging and Cut Transport Emissions appeared first on Carbon Credits.
Most businesses that decide to act on their net-zero targets reach the same point of friction. Buying carbon credits has meant tracking down brokers, sitting through sales calls, and requesting a quote just to learn a price, sometimes with limited proof of what you are buying.
The earnings calls that quietly reframed climate from sustainability question to operating risk.
Three earnings calls in the last 18 months tell the story without any help from a press release.
Hershey, May 2024: cocoa price exposure compresses margin, and the company attributes part of the cost shock to West African weather. Olam, July 2024: coffee climate exposure quantified in the annual report. JBS, January 2025: supply chain climate disclosures expanded materially in response to investor pressure and regulatory expectation. None of these companies issued the announcement as climate news. They issued it as financial news. The climate-linked supply chain risk did not arrive with a sustainability framing; it arrived as a P&L line.
You are probably reading this article because you suspect the same thing is happening to your business. This piece walks through what is showing up on which earnings calls, how procurement and finance leaders are quantifying the exposure, and what serious corporates are doing about it before the regulator asks.
Where climate risk has already appeared in earnings
The pattern is consistent across resource-intensive sectors. A weather event compresses supply, the price spikes, the cost flows through the income statement, and the analyst on the call asks whether the event is anomalous or structural. Increasingly, the honest answer is the second one.
Cocoa is the cleanest example. The 2023 to 2024 West African harvest fell sharply on the back of erratic rainfall and disease. Cocoa futures more than tripled. Companies with concentrated West African sourcing absorbed the cost; companies with diversified sourcing absorbed less. The exposure was not climate as ESG topic. It was climate as cost of goods.
Coffee follows the same pattern. Brazilian and Vietnamese harvests have moved on weather more sharply across the last several seasons. Roasters with long-tenor supplier relationships and origin diversification have managed the volatility; roasters with spot-market exposure have not. Wheat, sugar, palm oil, beef: the same dynamic in different commodities, a pattern the IPCC AR6 Working Group II report projects will intensify across agricultural systems through mid-century.
What this means: climate risk is no longer a footnote in the 10-K. It is a line item the CFO has to explain on the call.
The three commodity exposures that hit margin first
For most companies with material Scope 3 exposure, three exposures dominate the near-term P&L risk.
- Concentrated single-origin sourcing in a climate-vulnerable region. If your tier-one supply for any material commodity sits in one geography, you have a concentration risk that climate amplifies. Diversification across origins is the obvious hedge, but it takes years to build and requires relationships you cannot acquire by tender.
- Supplier financial fragility under climate stress. Smallholder farmers, who supply a large share of the global cocoa, coffee, and palm oil market, do not carry the balance sheets to absorb yield shocks. When yields collapse, they exit. When they exit, your supply base shrinks, and the surviving suppliers raise prices. The risk is structural, not cyclical.
- Logistics and storage exposure to extreme weather. Hurricane disruptions to Gulf shipping, drought-driven Panama Canal restrictions, flooding in European inland waterways: each of these has moved input costs in the last three years, a pattern documented in Munich Re’s natural catastrophe data. The exposure shows up as a one-quarter event in the financial press but accumulates over time on the cost line.
TCFD and ISSB disclosure changes
The disclosure architecture has now caught up with the risk. The Task Force on Climate-related Financial Disclosures, whose recommendations are now embedded in the ISSB’s IFRS S2 climate standard, requires companies to disclose climate-related risks across physical and transition categories, with quantification where possible.
For physical risk specifically (the climate-linked supply chain risk you are reading about), the disclosure must address both acute exposures (extreme weather events) and chronic exposures (gradual changes in temperature, precipitation, and growing seasons). The disclosure must address the time horizon over which the risk is material, the parts of the value chain exposed, and the financial impact under different scenarios.
The CSRD imposes similar requirements under European law, with double materiality (both financial and impact materiality) embedded in the assessment. The practical effect: your auditors and your investor relations team now need a defensible answer to the climate-linked supply chain risk question, and the answer needs to be quantified.
What procurement and finance can do now
Three actions matter near-term.
Map your exposure. Most companies do not have a clear view of which tier-one and tier-two suppliers sit in which climate-vulnerable geographies. Without the map, you cannot quantify the risk, and without the quantification, you cannot disclose it credibly. The map is the foundation, and World Resources Institute climate risk research provides useful public tooling to start.
Diversify and deepen, in that order. Diversification across origins reduces concentration risk, but the deeper move is to invest in the resilience of the suppliers you already have. Regenerative practices, agroforestry, soil health interventions: these reduce yield volatility under climate stress and protect your input cost trajectory.
Embed the climate spend inside procurement, not outside it. Treating climate risk as a sustainability cost line subordinates it to the ESG budget. Treating it as a procurement and resilience investment puts it in the budget that matters, which is the cost-of-goods budget that the CFO defends quarterly.
Nature-based supply chain investments are the asset class designed for exactly this purpose. They sit inside the value chain, they reduce climate-linked supply risk, they generate verifiable Scope 3 reductions, and they produce the documentation an auditor and a regulator can both test.
If you are quantifying climate-linked supply chain risk in advance of the next earnings cycle or the next disclosure period, the carbon and sustainability experts at Carbon Credit Capital can help you map your exposure and structure a Dual-Value Model response that addresses reduction, resilience, and disclosure-readiness in a single program. Schedule a consultation.
More and more small and medium-sized businesses are hearing the same question from their larger customers: What is your carbon footprint? That question now travels down entire supply chains, and it arrives next to tender requirements, certification criteria, and rising customer expectations.
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