Canada’s transit sector is moving forward on ZEBs, but with a mix of progress and caution, according to a Canadian Urban Transit Association’s (CUTA) report.

CUTA’s 2025 ZEB Readiness and Procurement Survey shows growing readiness among transit systems, while also highlighting short-term shifts in procurement strategies. 

Report Findings

Nationally, reported readiness rose by about 15%, with every region outside Ontario describing higher confidence in their ability to move forward. Several agencies that were once only researching ZEBs have advanced to planning or early implementation stages. 

Procurement intentions, however, reflect a more cautious approach. Battery electric buses made up 66% of short-term (zero to three years) procurement plans in 2024, but only 42% in 2025. 

In the medium term (four to six years), the share also fell from 88% to 66%. At the same time, hybrid and diesel plans increased, particularly in Ontario and the Maritimes. In Ontario, diesel procurement in the four- to six-year range rose by 16%. 

The reasons are complex. Agencies cited the cost of infrastructure, challenges in working with utilities, and local power limitations. Although many systems are investing in garage upgrades and charging facilities, regional approaches vary, according to the report.  

Proposed Solutions

Survey respondents also identified where federal support would be most useful. Priorities included predictable, long-term funding commitments, assistance with infrastructure and utility coordination, and simplified funding application processes. 

Some agencies noted that evolving U.S. tariffs could also affect costs and procurement timelines, underscoring the influence of international policy on local planning. 

The findings point to a maturing conversation within the sector. Transit systems are moving beyond broad discussions of electrification and focusing instead on the technical and financial realities of implementation. 

For governments, the message is consistent: agencies are preparing for a ZEB future, but require policy stability and infrastructure support to deliver on their plans. For riders and the public, the transition may take longer than initially anticipated, with diesel and hybrid vehicles continuing to play a role in the mix, according to CUTA officials.