Toronto Climate Week spotlights a new MaRS and City of Toronto procurement model to green the City's heavy-duty vehicles

At the inaugural Toronto Climate Week (TOCW) opening ceremony, co-hosted with the University of Toronto, leaders from MaRS, Martinrea International Inc. and the City of Toronto discuss how outcomes-based procurement can accelerate climate action.

TORONTO, Oct. 1, 2025 /PRNewswire/ - The City of Toronto is implementing a novel procurement model to accelerate its clean fleet strategy, thanks to a collaboration with  MaRS Discovery District and Martinrea International Inc., a leading automotive supplier. This new procurement pathway connects municipal buyers with homegrown solutions. 

As part of the TransformTO net-zero strategy, Toronto City Council passed a motion in 2021 that enabled accelerated procurement for ventures in the Mission from MaRS program. This initiative, developed by MaRS in collaboration with the City, paved the way for Effenco, a Canadian clean-technology venture, to scale its hybrid compressed natural gas (CNG) system with Martinrea. 

MaRS facilitated the introduction of these companies, which led to Martinrea's acquisition of Effenco, positioning Martinrea to retrofit Toronto's municipal fleet. MaRS then initiated multi-party discussions that culminated in an initial deployment and a subsequent City purchase of 58 Effenco-equipped systems as part of its planned fleet replacement schedule. This purchase will help shrink the carbon footprint of the City's fleet of heavy-duty vehicles.

"Having MaRS work to get a motion from the City of Toronto council to enable them to purchase technologies recommended through its program is a major step forward for municipalities," says Bruce Johnson, executive vice president of innovation development at Martinrea. "MaRS did a great job navigating procurement challenges."

"The Mission from MaRS program identifies Canadian tech companies with proven technologies that reduce emissions and support the City's journey toward net zero by 2040," says Abi Thomas, general manager of the City of Toronto's fleet services division. "Effenco's hybrid-CNG technology has demonstrated success in lowering emissions while delivering tangible operational cost savings, underscoring MaRS's credibility in identifying impactful Canadian innovation."  

For City of Toronto applications, the Effenco electric powertrain system supports a dramatic reduction in engine hours, fuel consumption and GHG emissions. Medium- and heavy-duty trucks are notorious polluters. Considering large vehicles account for 35 percent of emissions generated by the transportation sector, solutions like Effenco's could have an important role to play to keep emissions in check. 

Following a successful demonstration of the Effenco system in 2024, the City has equipped eight freight vehicles with the clean energy technology, with plans to retrofit 23 vehicles by March 2026 and 58 by 2027. The City has already seen major improvements: 

By the numbers (annual costs per vehicle):

• Emissions: Effenco-equipped system cuts emissions by 30 percent compared to CNG vehicles.
• Fuel costs: Effenco-equipped system delivers nearly 20 percent savings compared to CNG vehicles.
• Maintenance costs: Effenco-equipped system reduces maintenance expenses by about 15 percent compared to CNG vehicles.
• Social impact savings: $7,219 per vehicle including reduced noise and improved air quality.

"Outcomes-based procurement enables more innovative solutions instead of just going with the status quo. And by opening new procurement pathways and bringing the City of Toronto and Martinrea International Inc. together, it's showing other municipalities what is possible with made-in-Canada solutions," says Tyler Hamilton, senior director of climate at MaRS Discovery District.

"We're proud to showcase this collaboration at Toronto Climate Week," says Becky Park-Romanovsky, founder and executive director of Toronto Climate Week. "As Canada works to build a more resilient and sustainable economy, the partnership highlights how Canadian innovation will help cities meet ambitious climate goals."

For more information about the TOCW Procurement Panel please click here.

About MaRS
MaRS Discovery District is a charitable organization and North America's largest urban innovation hub, dedicated to helping Canadian technology companies succeed. With a focus on climate, health sciences and other emerging technologies, MaRS supports startups tackling some of the world's most pressing issues. MaRS spans more than 1.5 million square feet of cutting-edge office, lab, meeting and event space in downtown Toronto across two locations — the MaRS Centre and MaRS Waterfront. Since 2010, MaRS has helped ventures generate $11.5 billion in cumulative revenue, raise $19 billion in funding, and create and maintain more than 33,000 jobs. The MaRS platform also includes MaRS IAF, one of Canada's top seed-stage venture funds. Through its world-class facilities, strategic programs and partnerships, MaRS accelerates the adoption of groundbreaking Canadian technology and bolsters a globally competitive innovation ecosystem.

About Toronto Climate Week
Toronto Climate Week (TOCW) is a city-wide initiative designed as a free, decentralized conference where organizers are invited to host events and create a platform for climate, tech, creativity, and collaboration, TOCW unites startups, private-sector leaders, researchers, policy-makers, creators and grassroots organizations. The goal is to showcase Canadian climate leadership, retain and attract investments and talent, build economic resilience, and accelerate real-world solutions. For more details visit the website at tocw.ca or the LinkedIn page.

About Martinrea International Inc.
Martinrea International Inc. (TSX: MRE) is a leader in the development and production of quality metal parts, assemblies and modules, fluid management systems, and complex aluminum products focused primarily on the automotive sector. Martinrea currently employs more than 18,000 talented and motivated people and operates in 56 locations in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain, China, South Africa and Japan. Martinrea's vision is making lives better by being the best supplier we can be in the products we make and the services we provide. For more information on Martinrea, please visit www.martinrea.com. Follow Martinrea on LinkedIn, Instagram and Facebook.

About the City of Toronto
Toronto is home to more than three million people whose diversity and experiences make this great city Canada's leading economic engine and one of the world's most diverse and livable cities. As the fourth largest city in North America, Toronto is a global leader in technology, finance, film, music, culture and innovation and climate action, and consistently places at the top of international rankings due to investments championed by its government, residents and businesses. For more information visit www.toronto.ca or follow us on X at x.com/cityoftoronto, on Instagram at www.instagram.com/cityofto or on Facebook at www.facebook.com/cityofto.

About The University of Toronto 
The University of Toronto is a global leader in sustainability and climate research, driving innovative solutions to some of the world's most pressing environmental challenges. Through interdisciplinary research initiatives, U of T researchers are advancing cutting-edge work in renewable energy, climate modeling, sustainable urban design, environmental policy and climate finance. The university is also deeply committed to fostering partnerships with communities, governments, and industry to translate research into impactful climate action. As part of its institutional commitment to sustainability, U of T continues to reduce its own environmental footprint (ranked number one most sustainable university) and empower the next generation of climate leaders through education and engagement.

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SOURCE MaRS Discovery District