AN $8million Freight Decarbonisation Co-investment Fund will support the move towards a cleaner Victorian transport sector, state ports and freight minister Melissa Horne says.
Ms Horne announced the fund at the Victorian Transport Association 2026 state conference, an event that carried the theme Freight Never Stops.
“This [fund] sees individual grants of up to $32,000 for eligible small and medium-sized freight operators,” the minister told the gathering.
“This is, I believe, is practical support where it is needed most. Grant funding will be able to be used for the purchase or leasing of vehicles, vehicle fit-outs, electrical charges and alternative fuel costs.
“In partnership with the VTA, we are also helping freight operators gain hands-on experience with electrical heavy vehicles.”
VTA chief executive Peter Anderson commended the Victorian government "for delivering practical, hands‑on programs that support operators to trial cleaner vehicles, upgrade their infrastructure, and test new business models".
"Decarbonisation will take time — there is no single replacement for diesel — but programs like these give operators clarity, real‑world experience, and a viable pathway forward," Mr Anderson said.
Ms Horne also spoke about the work of Freight Victoria and partnerships with universities and research organisations to identify opportunities and new technologies for the transport sector.
Acknowledging it had been a time of uncertainty for many in the industry, the minister said investment was underway in modernising the regional rail freight network, an important component in reducing transport sector emissions.
“In terms of emissions, freight plays a critical role in delivering on Victoria’s own commitments. Rail freight is a significant contributor in addressing this challenge,” Ms Horne said.
“I know decarbonisation is top of mind for many of you. One of our greatest challenges is decarbonisation in our $36bn freight sector.
“The Victorian Freight Plan outlines that strategy to get us to low or zero emissions in relation to freight vehicles, infrastructure and technologies.”
Ms Horne said Victoria was a leader in the national pursuit of zero emission freight vehicles.
The VTA State Conference is being held at Silverwater Resort at San Remo, near Phillip Island.