Abstract Manager

Since Infrastructure Canada created the Zero Emission Transit Fund (ZETF) offering $2.75 billion to support the electrification of public transit and school bus fleets over the next 5 years, there has been a surge of interest in transitioning fleets to zero emission vehicles (ZEVs).

ZEVs are touted for offering reduced maintenance costs and significant fuel savings compared to internal combustion engine vehicles (ICEVs), while also being more environmentally friendly. These benefits are typically at the tradeoff of increased upfront capital costs for both the vehicles and supporting infrastructure. A key question to understand is whether ZEVs offer greater savings than the cost premium. From HDR’s analysis across various municipalities across Ontario, transitioning medium to heavy duty fleets to ZEVs is typically more costly than not transitioning. From a financial standpoint alone, municipalities and councils may be hesitant to transition. However, cost is not necessarily the contributing driver behind the decision to transition.

Various municipalities have declared climate emergencies and released plans to achieve net zero emissions by 2050 or earlier. Unfortunately, a traditional financial analysis comparing the lifecycle costs of operating ICEVs and ZEVs ignores public benefits that transitioning to ZEVs offer. These other public benefits such as reduced greenhouse gas emissions and other pollutants, and reduced noise impacts can be quantified and monetized in a sustainable return on investment (SROI) framework. An SROI extends beyond the scope of a financial ROI by evaluating the net societal impacts, including economic, social, and environmental factors and comparing those impacts against a project’s costs.

Using an SROI framework, we can value sustainability in the decision-making process and communicate the value of greenhouse gas emission reductions and other societal benefits to decision makers. HDR has evaluated both the financial and social impacts of transitioning to ZEVs and through several case studies presented, we will explore the differences shown between a financial lens and a sustainable lens.