The Victorian state government has signed a global agreement to transition the state’s freight sector to zero-emission vehicles, moving to shield the industry from volatile fuel prices and drive long-term sustainability.
The global memorandum of understanding (MoU) aligns Victoria with a coalition of 43 countries and more than 295 subnational governments and manufacturers.
Under the MoU, signatories are working towards an ambitious 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 move is a response to the sustained pressure high fuel costs have placed on freight operators. By endorsing the MoU, the Victorian government aims to provide market certainty for small and medium businesses while building the infrastructure necessary to support a cleaner fleet.
Key initiatives under the agreement include a national plan for high-capacity freight charging and the development of the Hume Zero corridor, a dedicated green transit route between Sydney and Melbourne.
The strategy also focuses on a broader shift of moving freight from road to rail to further reduce the state’s carbon footprint.
Minister for Ports and Freight Melissa Horne said: “Freight demand will more than double by 2050 – so we must act now by shifting to rail and backing cleaner transport*.*
“This endorsement links Victoria to a global push to cut emissions and halve them by 2030.”
To support local operators, the state government has launched two new initiatives: the AU$8 million Victorian Freight Decarbonisation Co-Investment Program and the AU$1.5 million Victorian Electric Heavy Vehicle Trial.
These programs are designed to lower the barrier for businesses to invest in electric vehicles and next-generation charging technology.
CALSTART CEO Michael Berube welcomed Victoria’s participation, stating that subnational governments are critical in accelerating the adoption of zero-emission trucks and buses, ultimately enhancing fuel resilience across the global supply chain.