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Green Freight Program

Funding incentives towards fleet energy assessments and eligible truck and trailer retrofits through Stream 1 and Stream 2 are now available.

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The Green Freight Program will help fleets reduce their fuel consumption and greenhouse gas emissions through fleet energy assessments, fleet retrofits, engine repowers, logistical best-practice implementation and the purchase of low carbon vehicles. This will be administered through two key funding streams.

Funding streams

Stream 1 – Assess and Retrofit

Status: Funding now available.

Providing grants towards Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits.

For Fleet Energy Assessments, the program will provide up to 50% per company, to a maximum of $40,000. For Truck/Trailer Equipment Retrofits, the program has established a list of eligible technologies and will provide up to 50% per device. The maximum amount payable for eligible activities under Stream 1 is $250,000 per applicant. Applicants will be reimbursed after submitting their invoices for eligible purchases. Stream 1 was launched December 12, 2022.

Stream 2 – Repower and Replace

Status: Now accepting applications for funding until November 16, 2023.

Providing non-repayable contributions towards fuels switching, engine repowers, and purchase of low carbon alternative fuel.

The program will contribute up to 50% of the total project costs up to a maximum of $5 million per project. The program will not offer funding towards the purchase of zero emission vehicles, as these fall under Transport Canada’s Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program (iMHZEV).

Calendar

Streams Launch Date Close Date RFP Type Status
Stream 1- Assess and Retrofit December 12, 2022 March 31, 2027 Continuous Intake Open
Stream 2- Repower and Replace July 26, 2023 November 16, 2023 Time Constrained Open

Our Programs

Green Freight Assessment Program

Surveys of freight companies revealed that financial challenges and lack of information were the main barriers to implementing emission-reducing strategies. The Green Freight Assessment Program (GFAP) was established in April 2018 as a small proof of concept initiative to address these challenges. The GFAP offered funding to medium- and heavy-duty vehicles ranging from Class 5 to Class 8. Financial incentives were provided to companies to undergo third-party fleet assessments, implement truck/trailer retrofits, and purchase new alternative fuel vehicles.

Throughout the lifecycle of the GFAP, it became evident that the demand for an incentive program that helps decarbonize fleets is only increasing. To address this need, in Budget 2022 the Government of Canada announced an investment of almost $200 million over 5 years for the recapitalization of the GFAP, which has been renamed the Green Freight Program (GFP). The expanded Program will help fleets reduce their fuel consumption and greenhouse gas emissions from on-road freight through fleet energy assessments, fleet retrofits, engine repowers, best-practice implementation and the purchase of low-carbon vehicles.

Other Green Freight Programs

Natural Resources Canada (NRCan) has been promoting freight efficiency within Canada’s on-road medium and heavy-duty commercial fleets for years, by providing tools and information through the SmartDriver Training Curriculum and the SmartWay Transport Partnership Programs.

Background

In Canada, transportation contributes nearly one quarter of total greenhouse gas (GHG) emissions. A significant amount of these transportation-related GHG emissions is related to medium and heavy-duty vehicles (MHDV). Demand for freight is highly correlated with economic growth and will continue to grow due to increasingly globalized supply chains, “just-in-time” delivery and the export of natural resources. While current and proposed heavy-duty vehicle GHG emission regulations aim to reduce emissions in this sector, these regulations only apply to new vehicles and engines and not to the current fleet of in-use vehicles, many of which will remain in use for many years with an average service life of more than 10 years.

It is recognized that there is a significant emission reductions potential from improving freight efficiency and Canada is identifying pathways for reducing emissions while ensuring competitiveness of the sector. A key part of these reductions will be obtained from MHDV fleets implementing energy-efficient operational practices, adopting newer technologies and purchasing alternative fuel vehicles. However, barriers persist to the wide-spread integration of energy-efficient measures in Canada’s MHDV fleet, in part due to a lack of awareness of measures well-suited to Canadian companies.

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