Funds are part of a $10-billion Canadian Infrastructure Bank Growth Plan to shore up the economy with investments in clean energy and low-carbon building retrofits, agriculture and broadband initiatives

The Canadian government today announced it is allocating $1.5 billion to “accelerate the adoption of zero-emission buses and charging infrastructure so Canadians can have cleaner commutes.”

The funds are part of a larger three-year, $10-billion “Growth Plan” that will also invest in clean energy projects, broadband expansion, agricultural irrigation and building retrofits. The spending is expected to create roughly 60,000 jobs along the way and help shore up a COVID-19 battered economy.

Prime Minister Justin Trudeau and Catherine McKenna, Minister of Infrastructure and Communities, teamed up in making the announcement.

Supporting Canadians

“We will continue to do what it takes to support Canadians through this crisis, safely get our economy back up and running, and get people back to work,” says Prime Minister Trudeau, in a release.

“Canada’s infrastructure plan invests in thousands of projects, creates jobs across the country, and builds stronger communities,” adds McKenna.

“We will be moving forward quickly to implement the $10-billion Growth Plan and deliver results”

Michael Sabia, Chair, Canada Infrastructure Bank.

The Growth Plan is largest component announced to date from the $35-billion Canada Infrastructure Bank (CIB) investment campaign created in 2017. The bank was established to boost the Canadian economy by financing the creation, improvement or updating of infrastructure projects in all regions. Its investments are also designed to attract additional dollars from private and institutional investors.

“We will be moving forward quickly to implement the $10-billion Growth Plan and deliver results,” says Michael Sabia, chair of the Canada Infrastructure Bank.

Measures are welcome

The EV industry has been hurt by COVID-19 on all fronts — from manufacturing to retail to infrastructure — and observers in the sector welcome the federal move.

“This investment goes beyond cutting carbon pollution — it’s also an investment in Canada’s four electric bus manufacturers and the local jobs they provide,” says Sarah Petrevan, policy director at think tank Clean Energy Canada, in a statement the followed the announcement.

“The Infrastructure Bank’s new plan will help build a more competitive and resilient economy — creating jobs for Canadians while tackling climate change.”

The Pembina Institute said it “applauds” the Growth Plan announcement. Carolyn Kim, Pembina’s transportation director, says that the $1.5-billion bus commitment will help Canada to realize the government’s commitment to get 5,000 zero-emission buses — transit and school — on Canadian roads by 2025.

She notes, however, that transit and school buses account for less than 10 per cent of Canada’s medium- and heavy-duty vehicle fleet. As such, Pembina is also urging the government to complement today’s announcement with “strong national ZEV policies to expand this investment to include commercial trucks,” Kim says. “This includes a ZEV sales mandate for all vehicles — passenger and commercial — and more financial incentives for procurement, infrastructure and training.”

More help for transit

The day before the federal announcement, the Canadian Urban Transit Research and Innovation Consortium (CUTRIC) announced separately that it is investing $999,000 in eCamion, an Ontario-based energy storage solution company. eCamion will use the money to develop a new ZEV bus charging system, aiming to halve the cost from $1 million to $500,000.

“To get 5,000 electric buses out on Canadian roads in the next few years, and realize the long-term vision of the recent Throne Speech, we need to make electrification easy for transit agencies,” said Josipa Petrunic, CEO of CUTRIC. “Reducing the cost and complexity of charging systems is a critical step in helping transit agencies flip the switch and go electric with their buses in the near future.”