Decarbonising the heavy transport sector
Examining the challenges and opportunities in electrifying heavy transport
Electric heavy vehicles are relative newcomers to Australian roads, but their ability to reduce harmful emissions and lower reliance on fossil fuels makes them a valuable decarbonisation tool. The CEFC has been investing in lower-emissions transport since 2015 and has developed a range of financing solutions designed to drive cleaner heavy transport outcomes as we move to a net zero emissions economy.
About this Explainer
Decarbonising the heavy transport sector
July 2026
The CEFC is working with policymakers, industry and project developers to advance innovative financing models that can fast-track the uptake of electric heavy vehicles to accelerate Australia’s transition to net zero emissions. This report outlines the reasons behind our focus and how we are increasing electric heavy transport on Australian roads.
View the CEFC explainer
Sector Potential
Transport accounts for about 20 per cent of Australia’s greenhouse gas emissions and is expected to become the largest emitting sector by the mid 2030s unless action is taken.
Electrifying heavy transport shifts reliance from imported fossil fuels to domestically generated electricity, reducing exposure to oil price volatility and strengthening operational resilience.
Electrifying road transport could save Australia some $233 billion to $429 billion in avoided costs depending on the speed of electric vehicle uptake.
The Role of the CEFC
The CEFC has invested in the transport sector to address key challenges to electric heavy vehicle uptake and demonstrate financial models that can be adapted and scaled to drive further electric vehicle use.
Challenges addressed:
- High upfront costs. Low-cost finance to Team Global Express is helping deploy more than 300 assets including light, medium and rigid battery electric trucks, courier vans, hybrid refrigerated trucks and mobile charging unit infrastructure.
- The availability of charging infrastructure. Finance to Zenobē is enabling it to scale up its electric truck fleet used for Woolworths grocery deliveries. Zenobē has also developed a first-of-its-kind fast-charging facility to service both Zenobē trucks and other commercial fleets in and around Sydney.
- Uncertainty around a vehicle’s residual value. Providing discounted finance for Volvo Group heavy-duty battery electric trucks also involves backing an innovative residual value support mechanism to reduce lease costs and to align the residual value of battery electric trucks with equivalent internal combustion engine models.
