What’s Fueling Commercial EV Market and Climate Friendly Equipment Growth?

By David Brydson and Russell Cook

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Even before the wildfires dominated the skies across North America and the unprecedented heat dome covered the southwestern U.S. states this summer, demand for commercial electric vehicles (EVs) and more climate-friendly equipment in manufacturing was speeding up across the U.S. and Canada.

Fuel prices, provincial tax incentives in British Columbia and Quebec, and ESG (environmental, social & governance) are contributing factors to this trend. And for many manufacturers and dealers, having a trusted finance partner that is knowledgeable and committed to climate change can make a real difference. ?

Meridian OneCap provides financing services to major North American commercial vehicle manufacturers and dealers across Canada, many of which are eligible to benefit from new government incentives and emerging opportunities. Meridian will provide financing for electric charging stations and a host of equipment that will be needed to rebuild the power grid.

The increased demand for electric vehicles was on full display when Meridian attended CONEXPO earlier this year; the executives who attended observed that “green” construction equipment and vehicles were showcased front and centre by many of the OEM exhibitors. The CONEXPO show had everything from excavator machine controls and radar buckets to hydrogen power, robotic excavators and aggregate recycling systems, according to Engineering News-Record.

Meridian executives also attended the Advanced Clean Transportation (ACT) Expo in Anaheim where some 185 low- and zero-emission fleet and vocational vehicles were on display.

Other climate-friendly construction equipment in demand such as drones, 3D printers and electric forklifts are becoming part of a growing category for equipment finance.

Meridian OneCap President Hugh Swandel is a member of the new Climate Finance Working Group. It is part of the Equipment Leasing and Finance Association (ELFA), based in Washington, D.C., and will determine the size of this new market segment, provide education, networking and advocacy.

In 2023, Canada’s government proposed a 15% refundable Electricity Credit for eligible investments in non-emitting electricity generation systems, abated natural gas electricity-fired electricity generation, stationary electricity storage systems and equipment for the transmission of electricity between provinces and territories.

In the U.S., states and municipalities are fueling growth in this sector, along with tax incentives to stem from the U.S. Inflation Reduction Act of 2022 and the Bipartisan Infrastructure Law, established in 2021 to rebuild roads, bridges and infrastructure with $50 billion slated for climate resilience and weatherization.

With the increasing focus of governments, businesses and finance leaders, the environment and the economy should benefit.