The Victorian Government has opened applications for two programs aimed at helping freight operators reduce fuel reliance, lower costs and transition to cleaner technologies.
The $8 million Freight Decarbonisation Co-Investment Program and the $1.5 million Victorian Electric Heavy Vehicle Trial will support businesses to invest in low and zero-emission vehicles, infrastructure and operational technology.
The co-investment program will offer grants of up to $300,000 for small and medium-sized freight operators, supporting upgrades such as cleaner vehicles, charging infrastructure, alternative fuels and efficiency-focused technologies.
Alongside this, the electric heavy vehicle trial, delivered in partnership with the Victorian Transport Association (VTA), will provide operators with practical, real-world experience using electric trucks in freight operations.
The programs form part of the Allan Labor Government’s broader plan to decarbonise Victoria’s freight sector, which is valued at $36 billion and employs around 240,000 people. The sector currently moves approximately 440 million tonnes of freight annually, with volumes expected to grow in the coming decades.
Transport accounts for around a quarter of Victoria’s total emissions, with freight identified as a key area for reduction.
Minister for Ports and Freight Melissa Horne says the programs are designed to ease cost pressures while supporting long-term transition.
“We know the cost of fuel is hurting our freight operators which is why rolling out these programs will help freight businesses cut costs, boost efficiency and modernise their fleets for the future.”
“We’re making it easier for operators to save on running costs while transitioning to cleaner, more reliable technology.”
Minister for Climate Action Lily D’Ambrosio says accelerating uptake of low and zero-emission vehicles is essential to broader emissions reduction targets.
“Supporting industry to adopt low and zero-emission vehicles is critical to cutting emissions and building a stronger, more resilient economy.”
VTA CEO Peter Anderson says the initiative reflects the scale of the transition required across the freight sector.
“We commend the Victorian Government for recognising the scale of the decarbonisation challenge and for supporting freight operators with meaningful, hands-on programs.”
“The VTA has consistently advocated for a measured, informed transition so that freight companies can adopt cleaner technologies when it makes operational and commercial sense.”
“While this shift will take years, the most important step is beginning with knowledge, clarity, and a plan.”
Expressions of interest for the Freight Decarbonisation Co-Investment Program close at 4:00pm on 22 April 2026.
