Accelerating Fleet Electrification in Canada
In 2020, FedEx joined the Pembina Institute’s Urban Delivery Solutions Initiative, a network of logistics and freight companies in Canada working to decarbonize their delivery fleets, from EVs to E-Bikes. Operators of large fleets, like FedEx, have already begun to switch over to low-carbon and electric commercial vehicles and uptake is expected to continue its rise. However, the adoption of zero-emission medium- and heavy-duty vehicles is at risk of stalling largely because the deployment of charging infrastructure has not kept pace.
“We've been witnessing the gradual shift to fleet electrification, which is likely going to go into overdrive in less than 10 years,” shared Adam Thorn, PhD, Transportation Director at the Pembina Institute. “This means enormous changes in the types of trucks and buses on the road and the infrastructure needed to power these vehicles.”
With generous support from FedEx, the Pembina Institute is launching the Grid Readiness Project in collaboration with RMI to help accelerate the transition. Utilities and energy regulators are only now beginning to make planning decisions that will address the steep increase in energy demand from zero-carbon road transportation. In the absence of research that can inform complex decisions and investments, the Pembina Institute will use RMI’s new GridUp data platform, a powerful tool that will inform utilities, energy regulators, and others on how to proactively locate, strengthen and upgrade charging infrastructure.
“RMI is thrilled to work with the Pembina Institute as they leverage the GridUp platform to advance planning for their region’s electric vehicle charging needs,” says Dave Mullaney, Principal of Carbon Free Transportation at RMI. “Equipped with data-driven insights from GridUp, utilities and grid operators in the Greater Toronto and Hamilton Area (GTHA) will be able to validate proactive infrastructure investments where the imminence of electric vehicle charging demand is clear, enabling rapid electric vehicle adoption that avoids unnecessary expenditures.”
Pembina will also be working with municipalities, industry stakeholders, and policymakers to assess grid readiness and recommend next steps.
“Fleet electrification is a key pillar of the FedEx roadmap to carbon-neutral operations by 2040 and our commitment to deliver a more sustainable future for all,” shares Dean Jamieson, Vice President of Operations, FedEx Express Canada. “Our commitment to the Pembina Institute will bring RMI’s advanced grid planning tools to the Greater Toronto area, empowering key players in the electrification ecosystem with information needed to support a wide-scale transition to EVs.”
This announcement reflects a commitment by FedEx to advance sustainable transportation throughout Canada. FedEx is working toward transforming its entire parcel pickup and delivery fleet to zero-tailpipe-emissions vehicles by 2040, as part of its goal to reach carbon-neutral operations by the same year.
Quick facts
- In June of 2023, FedEx Express Canada received its first 50 Zevo 600 all-electric delivery vehicles from GM subsidiary BrightDrop. FedEx now has over 1,000 low-emission vehicles globally.
- Fleet turnover is expected to continue its rise. BloombergNEF predicts commercial road freight will have another breakout year in 2024, forecasting a doubling of deliveries of new electric vehicles from approximately 500,000 in 2023 to 1 million in 2024.
- Electrifying all 4 million U.S. and Canadian vans and step vans would save nearly 43.5 million tonnes of greenhouse gas emissions each year.
- Electrifying all medium-duty box trucks in the U.S. and Canada would save more than 7.6 million tonnes of GHG emissions each year.