Victoria Backs Global Push for Zero-Emission Freight

The Victorian Government has joined a global agreement aimed at accelerating the transition to zero-emission freight vehicles, as rising fuel costs continue to place pressure on transport operators and supply chains.

Under the Memorandum of Understanding on zero-emission medium- and heavy-duty vehicles, Victoria joins 43 countries and almost 300 governments, manufacturers, fleet operators, financial institutions and infrastructure providers working to reduce transport emissions and decarbonise the freight sector.

The agreement sets a target for 100 per cent of new truck and bus sales to be zero-emission by 2040, with an interim goal of 30 per cent by 2030. The initiative also supports the development of charging infrastructure, including the Sydney-to-Melbourne “Hume Zero” freight corridor, and aims to strengthen market certainty for operators transitioning away from diesel vehicles.

The Victorian Labor Government said the partnership would help businesses reduce fuel dependence and operating costs while supporting broader sustainability targets. Victoria has committed to net zero emissions by 2050 and is targeting 50 per cent zero-emission sales for new light vehicles by 2030.

The agreement forms part of a wider strategy to decarbonise freight and encourage a greater shift of freight transport from road to rail. The government recently launched two funding initiatives designed to support freight operators investing in cleaner technologies, including the A$8 million Victorian Freight Decarbonisation Co-Investment Program and the A$1.5 million Victorian Electric Heavy Vehicle Trial.

Melissa Horne said freight demand was expected to more than double by 2050, making early action essential to reduce emissions and support cleaner transport alternatives.

She said the endorsement connected Victoria to a global effort to reduce transport emissions while strengthening long-term fuel resilience across the freight industry.

Michael Berube welcomed Victoria’s participation in the global initiative, which is co-led by CALSTART’s Drive to Zero programme. He said subnational governments played a critical role in accelerating adoption of zero-emission trucks and buses and helping build the infrastructure needed for large-scale deployment.

Berube added that Victoria’s endorsement would strengthen collaboration with international partners and support faster adoption of zero-emission vans, trucks and buses across the freight sector.

Victoria’s decision to join the global zero-emission freight agreement reflects growing recognition that transport decarbonisation is becoming both an environmental and economic priority. While the transition to electric heavy vehicles still faces infrastructure and cost challenges, government-backed investment programmes and coordinated international frameworks could help accelerate adoption, particularly for fleet operators seeking protection from volatile fuel prices over the long term.

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