The Atmospheric Fund (TAF) is investing $1 million in 7Gen, a Vancouver-based company founded in 2020 that provides end-to-end electrification services for commercial truckers across Canada.

With diesel-powered medium- and heavy-duty vehicles (MHDVs) dominating the sector, commercial trucking accounts for 37% of Canada’s transportation emissions and adds an estimated $3.2 billion to annual health and social costs in the Greater Toronto and Hamilton Area (GTHA) alone, TAF wrote in a release. By TAF’s estimates, 7Gen’s fleet transition to EVs will help eliminate “an estimated 589,165 tonnes of carbon over 20 years, supporting Canada’s zero-emission vehicle targets and local climate targets in the GTHA.”

7Gen already offers its turnkey electrification services to a range of companies, including large multinationals like IKEA and Federal Express looking to decarbonize last-mile deliveries, and smaller ventures like Quebec vending machine provider Cafégo and green courier Novex in British Columbia.

For a monthly fee, 7Gen helps companies choose and finance a vehicle, plan and build charging stops, optimize routes, and manage vehicle repairs and maintenance. With this approach, the transition to EVs “pays for itself right from the first monthly payment,” Propulsion Quebec wrote in 2022.

Some 2½ years on, 7Gen is still going strong, while the need for its services accelerates.

“The health benefits of fleet switching to EVs will especially improve air quality near schools, transit hubs, and residential areas where idling is common,” TAF wrote, citing its own analysis showing that 7Gen-supported electric vehicle fleets “would result in at least $432.2 million in health benefits over 20 years.” 

Alongside the billions saved, there are billions to be made in supporting MHDV electrification, from investing in the manufacture of electric MHDVs and high-power charging networks, to supporting grid and battery storage innovations, TAF writes in a separate post.

“The actions taken by various governments to advance electric MHDVs demonstrate a commitment to economy-wide electrification, providing strong tailwinds for investment,” TAF adds, citing Quebec’s Bill 81 credit system to incentivize electric heavy-duty truck sales as an example.

TAF is urging the federal government to draw lessons from international examples, including California’s streamlined EV permitting process, Europe’s mandated charging network standards, and China’s use of battery-swapping infrastructure.

“The transition to electric fleets has been slow because of gaps in knowledge, infrastructure, and financing. But, electrifying this sector is a $4.6 billion opportunity,” said Kristian Knibutat, TAF’s vice president of impact investing. “That’s why TAF is backing 7Gen’s high-impact business model for its strong potential to scale and reduce transportation emissions and air pollution in cities across Canada.”