Canada Infrastructure Bank invests $62 million in Durham Region’s battery electric buses
TORONTO – The Canada Infrastructure Bank (CIB) has achieved financial close on an investment of up to $62 million to support Durham Region Transit’s (DRT) purchase of 98 zero-emission buses (ZEBs) over the next four years.
Battery electric buses are a high priority in DRT’s E-Mission Zero program, helping to improve the quality of life for Durham Region residents who will benefit from cleaner and quieter commuting options.
The CIB’s loan will help cover the higher upfront capital costs of ZEBs as compared to diesel buses, helping to accelerate the electrification of Durham Region’s bus fleet.
The addition of these electric buses will support Durham’s plan to transition to a full fleet of zero-emission vehicles by 2037.
Once in service, the implementation of up to 98 battery electric buses is estimated to save approximately 6,525 tonnes of carbon emissions per year.
Consistent with the CIB’s ZEB initiative, repayment of the investment is expected to be covered through the anticipated reduced maintenance and fuel costs over the life of the ZEBs as compared to diesel buses. The CIB’s financing will work in conjunction with Infrastructure Canada’s funding for zero-emission transit.
Durham Region will be responsible for the procurement of buses and related charging infrastructure.
Diesel buses are significant greenhouse gas contributors across Canada. ZEBs are an alternative low-carbon transit solution which produce near zero tailpipe emissions and require less maintenance than traditional diesel buses.
The CIB has committed over $1.5 billion towards more than 5,000 zero-emissions buses to date. Our investment will bring Durham Region one step closer to reaching its goal of net zero. We are proud our partnership will help Durham provide more sustainable public transportation for residents today and into the future.
Reducing greenhouse gas emissions is essential to improving the quality of life of all Canadians. Through flexible funding programs like the Canada Community-Building Fund, communities across the country are able to invest more in sustainable transit projects. As a result of this funding from the Canada Infrastructure Bank, Durham Region Transit’s new zero-emission buses will help to build a cleaner and more accessible community for residents to enjoy for many years to come.
Affordable and sustainable transit is essential to strengthening our communities, reducing emissions, and providing more equitable transportation. Through this significant investment in zero-emission buses for Durham Region Transit, our government remains committed to building a cleaner and more accessible future for all communities in Canada.
In terms of helping build sustainable communities, today’s announcement means Durham Region can leap forward. The Canada Infrastructure Bank is providing $62 million to purchase 98 electric buses across our region. This is a massive win for our communities, and will improve public transportation and decrease operating costs, while reducing emissions and protecting our environment. Investments like this improve community infrastructure, build a more prosperous economy, and fight climate change.
This milestone financing agreement represents a significant stride towards the goals outlined in Durham Region’s Climate Change Action Plan. We are grateful to be supported by the Canada Infrastructure Bank to enable Durham Region Transit to begin to realize its E-Mission Zero goals.
DRT’s transition to a zero-emission fleet is critical to the health of our community and requires significant capital investment to achieve our targets. Financing provided by the CIB makes it possible for DRT to advance our E-Mission Zero program and accelerate our reductions of greenhouse gas emissions.
Quick Facts
- The CIB’s Zero-emission Buses Initiative assists transit agencies and school bus operators to transition their fleets to modern, environmentally friendly vehicles.
- The CIB seeks to invest up to $5 billion into public transit projects that are in the public interest and support Canadian sustainable economic growth.
- All CIB investments are subject to approval by its Board of Directors.
- Aligning with Durham Region’s Corporate Climate Change Action Plan and Community Energy Plan, DRT is committed to adopting renewable technologies that contribute to sustainable communities across the Region.
- DRT’s E-Mission Zero program includes a suite of emission-reducing initiatives intended to introduce a more sustainable network of vehicles, infrastructure and facilities over the next 25 years. Bringing new technology and smart infrastructure to Durham Region, this program is positioned to significantly reduce transit emissions; with a focus on healthy, sustainable communities for generations to come.
