Victoria joins global push to phase out diesel freight vehicles by 2040

High fuel prices continue to place pressure on the freight industry, prompting the Allan Labor Government to back a global initiative aimed at accelerating the shift to zero-emission freight vehicles.

Victoria has endorsed a global Memorandum of Understanding (MoU) that brings together 43 countries and more than 295 governments, along with manufacturers, financiers, fleet operators, and infrastructure providers. The agreement focuses on reducing freight fuel consumption and supporting the transition to cleaner, more sustainable transport systems.

Under the MoU, signatories have committed to working towards 100 per cent zero-emission sales of new trucks and buses by 2040, with an interim target of 30 per cent by 2030. The initiative also includes planning for high-capacity freight charging infrastructure and development of key freight corridors, including the Sydney-Melbourne "Hume Zero" corridor.

A key focus of the agreement is supporting small and medium-sized freight operators through improved market certainty and targeted policy settings, while enabling broader decarbonisation across the sector. Victoria's participation also strengthens its connection to international efforts to reach net zero emissions by 2050.

The endorsement gives Victoria access to a global network working to expand zero-emission freight technologies and supports the state's broader ambition of 50 per cent zero-emission new light vehicle sales by 2030.

The MoU complements existing state initiatives, including the $8 million Victorian Freight Decarbonisation Co-Investment Program and the $1.5 million Victorian Electric Heavy Vehicle Trial. These programs are designed to support investment in low- and zero-emission vehicles, charging infrastructure, and emerging transport technologies.

Together, these measures aim to reduce freight costs, improve efficiency, and support long-term sustainability across the freight sector, while also shifting more freight from road to rail where possible.

Minister for Ports and Freight Melissa Horne said freight demand is expected to more than double by 2050, making early action essential through investment in cleaner transport and rail freight alternatives. She said the agreement connects Victoria to a global effort to cut emissions significantly by 2030.

CALSTART CEO Michael Berube said Victoria's participation strengthens global cooperation on zero-emission trucks and buses, highlighting the importance of subnational governments in accelerating adoption. He said the partnership would help reduce emissions, improve fuel resilience, and support faster uptake of zero-emission freight vehicles.