The Zero Emission Transit Fund (ZETF) supports communities across Canada in transitioning to zero emission public transit and school buses. The program helps electrify bus fleets while reducing emissions and operational costs over the long term, working in close partnership with the Canada Infrastructure Bank (CIB).

Zero emission buses (ZEBs) are vehicles that produce no tailpipe emissions, including battery-electric and hydrogen fuel cell buses. They may have a conventional internal combustion engine for auxiliary functions but must be able to operate without using it. Retrofits of conventional fuel buses to ZEBs are also eligible.

The transportation sector accounts for 25% of Canada's greenhouse gas emissions. With Canada generating approximately 82% of its electricity from zero emission power sources, shifting vehicles to zero emission powertrains presents a significant opportunity for emissions reductions.

Two funding components:

Planning Projects: Grants up to 80% of eligible costs for studies, modeling and feasibility analysis to support future ZEB deployment. Helps operators establish comprehensive electrification plans including:

• System-wide design and technology selection
• Route assessment and operational planning
• Financial planning and lifecycle cost analysis
• Capacity building and deployment strategy

Capital Projects: Contributions up to 50% of eligible capital costs for ZEB deployment, including:

• Zero emission buses (battery-electric, hydrogen fuel cell, retrofits)
• Charging and refueling infrastructure
• Facility construction or improvements to accommodate ZEB operations
• Related infrastructure needs

The program works closely with the Canada Infrastructure Bank, which provides innovative financing solutions by leveraging forecasted operational cost savings to offset higher upfront costs of ZEB deployment. Total Infrastructure Canada funding plus any CIB financing cannot exceed 100% of eligible costs.