As part of a week of government action to support the sector, the funding will drive innovation, decarbonise freight vehicles and create new jobs.
The government funding will be invested across four innovative green projects to roll out up to 370 zero emission heavy goods vehicles (HGVs).
The investment that is delivered in partnership with Innovate UK will provide around 57 refuelling and electric charging sites to help the haulage sector decarbonise.
Voltempo in Birmingham is one of the recipients of the £200 million funding, its eFREIGHT 2030 project is set to create up to 200 new jobs by 2030 and provide Birmingham with one of the UK's first electric vehicle charging hubs dedicated to HGVs.
Roads Minister, Richard Holden, said: "Freight and logistics are the beating heart of our economy and it is only right that we celebrate the sector so that it gets the recognition and support it deserves.
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"From boosting zero emission tech across freight to attracting the future generation of talent to the industry, we are working hard to drive innovation, create jobs and grow the economy by building a brighter, more innovative future for one of our most crucial industries."
Decarbonisation Minister, Jesse Norman, said: "I'm pleased to reveal that we're investing £200 million to roll out 370 zero emission trucks, and a further £2.4 million to pioneer green tech through the Freight Innovation Fund, as we work closely with the sector to create new jobs, grow the economy and reach net zero by 2050."
Richard Smith, Managing Director of the Road Haulage Association, said: "The £200 million commitment ministers are putting into this demonstrator significantly helps to de-risk the transition to net zero. The real-world demonstrators will answer many of the practical questions operators have and, in turn, give our members the confidence to invest in the zero emission lorries needed to drive down carbon emissions from our sector."
Indro Mukerjee, CEO of Innovate UK, said: "As the UK’s innovation agency, Innovate UK is committed to supporting innovative UK businesses working to decarbonise the UK’s road freight industry.
"Together with the Department for Transport (DfT), the £200 million in government funding will develop world-leading battery and hydrogen trucks and demonstrate, at a large scale, creating greener jobs and boosting our net zero economy."
An additional £2.4m has been provided through the second round of the Freight Innovation Fund (FIF). The FIF Accelerator that is part of the fund will help up to 10 small and medium enterprises develop new ways to make freight more efficient, resilient and greener.
