The Federal Government has announced a $70 million investment with Volvo Group Australia to accelerate the transition to electric trucks across the country.
The funding, provided through the Clean Energy Finance Corporation (CEFC), will provide discounted finance for electric truck leases, support stronger end-of-lease values, and assist businesses installing charging infrastructure at their depots.
Volvo already manufactures a full range of electric heavy vehicles and will begin building electric trucks at its Queensland facility from 2026.
Volvo Group Australia President and CEO, Martin Merrick, said the financing comes at a crucial time for the nation’s net-zero goals, noting that upfront cost remains a major barrier for operators seeking to transition to electric fleets.
Volvo Australia is a foundation sponsor of the Australian Trucking Association (ATA).
In April, the ATA released detailed modelling of three truck emissions policies that would together reduce carbon emissions by a cumulative 35.1 million tonnes by 2050.
The ATA policies include establishing a low carbon liquid fuel industry in Australia, improving heavy vehicle productivity and reducing financial barriers to improve adoption of low emissions vehicles.
ATA CEO, Mathew Munro, said the ATA was pleased with the Australian Government’s initial response to the ATA policy proposals, with $1.1 billion committed over ten years to incentivise domestic production of low carbon liquid fuels.
“Reliable access to renewable diesel will be essential in harder to abate trucking sectors such as heavy, long-distance road freight,”: he said.
“Truck productivity and efficiency improvement featured as a key element in the government’s Transport and Infrastructure Net Zero Roadmap and Action Plan.
“The Productivity Commission is now inquiring into the impacts of a heavy vehicle productivity reform package, with a focus on road access and regulatory barriers. “
Munro added that the ATA welcomed the $70m investment in discounted finance and residual value support.
“Reducing financial barriers to EV uptake is essential,” he said.
Read more news from Volvo relating to electric trucks.
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