Victorian Freight Decarbonisation Co-Investment Program

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Victorian Freight Decarbonisation Co-Investment Program is open to expressions of interest (EOI).

Program Overview

We’re working to decarbonise our freight sector as part of the Victorian Freight Plan.

The $8 million Victorian Freight Decarbonisation Co-Investment Program aims to help the freight industry reduce emissions, with grants of up to $300,000. available.

Victorian Freight Decarbonisation Co-Investment (VFDC) Program Guidelines - March 2026

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Eligibility

Small to medium freight operators who move goods by road or rail can apply for a grant. To be eligible applicants must:

hold an Australian Business Number (ABN) since 30 June 2022
employ 200 or fewer full-time equivalent employees
be registered and operating in Victoria
be financially viable and not insolvent, with no directors who are undischarged bankrupts

Typical eligible businesses (not exclusive)

road and rail freight transport operators
freight forwarding and logistics providers
courier and delivery businesses
waste and bulk transport operators

Eligible projects

To be eligible for funding, projects must support the shift to zero and low‑emissions freight vehicles and cleaner technologies.
Eligible activities include:

buying or leasing low or zero‑emission freight vehicles
fit‑outs /retrofits that customise a new vehicle for its freight task (e.g. refrigerated bodies, tail‑lifts, specialised equipment)
installing charging or refueling infrastructure (e.g. electric chargers, depot upgrades)
the cost of charging or refueling new low or zero‑emissions vehicles
adopting low‑carbon liquid fuels such as renewable diesel or biodiesel
trying new technologies or innovative business ideas that reduce emissions
other proposals that contribute to program objectives which support reducing emissions

Available funding

Applications must meet all project milestones within 18 months of contract signing.

Maximum grant amount: $300,000 (ex GST)
Minimum co‑contribution: 1:5 For example, applicants can request a grant of $300,000 (excluding GST) only if they co-contribute a minimum of $60,000 (excluding GST) towards their project.
Co‑contributions must be cash (not in‑kind)
Government funding from another program cannot be used as the co‑contribution

Program purpose

We’re offering grants to help the freight industry transition to zero and low-emissions vehicles.

The short-term objectives of the program are to:

support the land freight industry to decarbonise
gather insights on the opportunities and challenges transport operators face in reducing emissions
promote the adoption of emerging technologies and build industry capability.

The longer-term outcomes of the program are to:

reduce emissions from freight transport
encourage small and medium-sized operators to adopt low and or zero-emission freight vehicles
enhance understanding of the opportunities and challenges in using these vehicles in the freight industry
boost long-term productivity by supporting next‑generation vehicles and infrastructure, while reducing operating costs.
Improve community amenity with cleaner air, quieter streets, and more pleasant neighbourhoods along freight routes.

Key application dates

Important: Register your Expression of Interest

The Expression of Interest (EOI) phase helps Freight Victoria gauge interest in the program and confirm eligibility.

To submit an EOI

Complete an EOI form on the program website and follow the submission instructions.
Provide details about your business:
1. project outline
2. expected outcomes
3. timeline for delivery
4. funding request.
Submit your EOI by 4pm, 22 April 2026.

The program is targeting the following dates:

Expression of Interest open: 8.30am, 23 March 2026
Expression of Interest close: 4pm, 22 April 2026
Expression of Interest assessments: April-May 2026
Applications open (by invite only): May 2026
Applications close: June-July 2026
Application assessments: June-August 2026
Notification of application outcomes: October 2026

Projects must complete their funded milestones within 18 months of signing the grant agreement.

Extensions, such as for infrastructure projects, will be at the discretion of the Department of Transport and Planning.

Application process

The program has a two-stage application process:

Expression of Interest (EOI)
Application (by invitation only)

To be considered for funding, you must submit an EOI. The EOI collects basic business information and a brief description of your proposed project.

The EOI will ask for:

ABN and, if applicable, either Australian Company Number (ACN) or Incorporation Association Number (IAN) of the legal entity employing the applicant
confirmation of a WorkSafe Certificate of Currency, if applicable
confirmation of your ability to provide 3 years of audited financial statements for your business
pertinent information regarding details of your business, including employee numbers, number of freight vehicles, and annual turnover
information regarding the nature and expected timeline of your project
information regarding the amount of funds you are requesting and your level of co-contribution

Application assessment

EOIs and applications are assessed based on business eligibility, alignment with the goal of reducing freight emissions, and the applicant’s ability to deliver the project on time.

Invited applications are scored on project alignment, design, delivery capability, and financial viability, with final decisions made by the Minister for Ports and Freight.

Projects with greater emissions reductions, shared‑use infrastructure, or stronger co‑contributions may be prioritised.

Contact

For program enquiries (e.g., eligibility, funding, project scope): cleanair@transport.vic.gov.au

For technical support (e.g., Expression of Interest or Application portal issues): vic.freight@grants.vic.gov.au

What is the Victorian Freight Decarbonisation Co-Investment Program?
The Victorian Freight Decarbonisation Co-Investment Program supports small and medium freight operators in transitioning to low and zero-emission vehicles.
Funded through Victoria Delivers: Victorian Freight Plan 2025–2030, the program provides $8 million over two years through a co-investment model to help industry:
- transition to low or zero-emission freight vehicles
- address uncertainty around vehicle range, charging infrastructure and whole-of-life costs
- trial new technologies and business models
- build industry knowledge about freight decarbonisation
The full Program Guidelines available below.

Victorian Freight Decarbonisation Co-Investment (VFDC) Program Guidelines - March 2026
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Why is freight decarbonisation important?
Victoria's freight industry:
- employs around 240,000 people
- moves approximately 440 million tonnes of freight annually (expected to grow to 908 million tonnes by 2050–51)
Freight transport contributes significantly to greenhouse gas emissions, which impact climate, health, and supply chains. Decarbonising freight will:
- improve sustainability and health outcomes
- support climate targets
- strengthen long-term industry resilience
- encourage innovation and private sector investment
How much funding is available?
Individual grants of up to $300,000 (excluding GST) are available to eligible small to medium-sized freight operators.
What can the grant funding be used for?
Eligible initiatives include:
- capital costs for purchase or lease of low or zero-emission freight vehicles
- vehicle fit-outs for newly purchased or leased vehicles
- infrastructure to support low or zero-emission vehicles (e.g. electric chargers and required behind-the-meter site upgrades)
- charging or refueling costs for new low or zeroemission vehicles
- trials of alternative fuels (e.g. renewable diesel, biodiesel)
- technology and business model innovation (e.g. moving freight from road to rail)
Other proposals that contribute to program objectives (subject to DTP discretion)
Who is eligible to apply?
The program is open to small to medium land freight operators operating in Victoria.
This typically includes businesses that:
- move goods for clients from one location to another
- lease or hire trucks with drivers for freight transport
- provide freight forwarding and logistics services (road and/or rail)
- transport bulk, packaged or consolidated freight
- provide courier or waste collection services
Eligible businesses must:
- hold an ABN (held since 30 June 2022)
- be registered and operating in Victoria
- employ 200 full-time equivalent employees or fewer
- not be insolvent or have directors who are undischarged bankrupt
- be able to enter into a grant agreement
Eligible ANZSIC codes include:
- 4610 Road Freight Transport
- 4710 Rail Freight Transport
- 5292 Freight Forwarding Services
- 5299 Other Transport Support Services
- 6619 Other Motor Vehicle and Transport Equipment Rental and Hiring
- 5102 Courier Pick-up and Delivery Services
- 2911 Solid Waste Collection Services
- 2919 Other Waste Collection Services
Other ANZSIC codes may be considered at DTP’s discretion.
Who is not eligible?
The following cannot apply:
- Government entities
- Overseas organisations
- Businesses with ABNs registered interstate
- Businesses employing more than 200 FTE employees
- Businesses not engaged in land freight operations
- Passenger transport services
- Insolvent businesses or directors who are undischarged bankrupt
What is the application process?
Step 1: Expression of Interest (EOI)
You must first submit an Expression of Interest (EOI) before being invited to apply.
The EOI helps Freight Victoria:
- confirm scale of interest
- assess eligibility
- understand proposed project scope
To submit an EOI:
Complete the online EOI form via the program website
Provide business details and a brief outline of:
- the proposed project
- expected outcomes
- timeline
- funding request
Submit by 4pm, 22 April 2026
Only shortlisted applicants will be invited to submit a full application.
What are the key dates?
- EOI opens: 8:30am, 23 March 2026
- EOI closes: 4pm, 22 April 2026
- EOI assessments: April–May 2026
- Applications open (by invitation only): May-June 2026
- Applications close: June 2026
- Application assessments: June–August 2026
- Notification of outcomes: October 2026
How long do funded projects have to be completed?
Projects must be completed within 18 months of executing the grant agreement.
Extensions may be negotiated (for example, infrastructure projects) at the discretion of the Department of Transport and Planning (DTP).
What are the Program objectives?
Short-term objectives
- Support the land freight industry to decarbonise
- Collect and share insights on opportunities and challenges in transitioning
Long-term outcomes
- Increase adoption of zero-emission freight vehicles
- Improve industry understanding of decarbonisation
- Reduce freight emissions across Victoria
- Strengthen innovation in freight operations
Do I need to wait until the grant agreement is signed before starting my project?
Yes. Projects must not begin until a grant agreement has been signed by both the successful applicant and the Victorian Government. Any work started before the grant agreement is signed will not be funded.
Can I submit more than one EOI?
Businesses may submit more than one EOI. Each project will be assessed separately and must independently meet eligibility and co‑contribution requirements.
Can I partner with another business on a project?
Yes. Partnerships or consortia are allowed, but one eligible Victorian Freight Operator must be the lead applicant and enter into the grant agreement.
Are second‑hand vehicles eligible?
Second‑hand low or zero‑emissions vehicles may be eligible if they meet Australian Design Rules, have a Victorian garage address, and meet the program’s commercial‑use requirements.
Can infrastructure be installed at a rented site?
Yes, as long as the applicant can demonstrate the right to use the site for the duration of the project (e.g., lease agreement or owner consent).
Are light commercial vehicles eligible?
Light vehicles (less than 4.5 tonnes Gross Vehicle Mass) may be eligible if they are used for commercial freight operations and meet low‑ or zero‑emissions criteria.
Do I need to obtain applicable permits before I apply?
It is recommended that the applicant obtain necessary permits before submitting a formal application.
Is solar generation or battery storage eligible?
Projects that directly support charging low‑ or zero‑emission freight vehicles may be eligible if they form part of a broader decarbonisation project.
Do I need to share data with the Victorian Government?
Yes. Successful applicants must participate in monitoring and evaluation activities, including providing project data and completing surveys to help assess program outcomes.
How will charging or refuelling costs be verified?
Applicants must track and report eligible charging or refuelling costs and may be asked to provide invoices, meter data, or fuel records as part of project reporting.
If I lease a vehicle, who must hold the lease?
The applicant's business must hold the lease directly. Sub‑leases or vehicles leased by third parties are not ineligible.
Can I apply if my business uses subcontractors?
Yes — as long as your business is the freight operator, you can apply for the grant. Brokers applying on behalf of subcontractors are not eligible.
Is ongoing maintenance covered?
No. Routine operating or maintenance costs are not eligible for funding.
What happens if my project is delayed?
Extensions may be considered for infrastructure‑related delays, but only by negotiation with the Department of Transport and Planning. Extensions are not guaranteed.

Traffic & transport

Updated 23 March 2026