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Green Freight Program

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

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.

Stream 2 – Repower and Replace

Status: Launching in the spring of 2023

Providing 50% cost shared funding towards fuel-switching, engine repowers and large scale improved logistical best-practice projects in non-repayable contributions provisions.

The maximum amount payable through the Green Freight Program will be capped at $5M and will be subject to a 50% cost share.

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 Spring 2023 Spring 2023 Time Constrained To be launched

About Us

Transportation is the second largest source of GHG emissions in Canada, accounting for a quarter of Canada’s total GHG emissions. One way to reduce the amount of GHG emissions is to target diesel-powered trucks that will remain on the road for years to come, until zero emission vehicles become more commercialized

Between 2018 and 2022, NRCan (Natural Resources Canada) administered the Green Freight Assessment Program (GFAP), investing $3.4M over four (4) years to address financial and awareness barriers faced by freight companies. The GFAP offered funding to medium- and heavy-duty vehicles ranging from Class 5-8. Financial incentives were provided to companies to undergo third-party fleet assessments, implement truck/trailer retrofits, and purchase new alternative fuel vehicles.

The GFAP has contributed to the review and analysis of over 5,000 medium- and heavy-duty vehicles. It also provided funding to upgrade 1,620 trucks and trailers with 2,830 individual retrofits and supported the purchase 20 new natural gas trucks.

Throughout the lifecycle of the GFAP, it became evident that the demand for an incentive program that helps decarbonize fleets is only increasing. GFAP was a small scale, proof of concept, designed to gauge the need and demand for incentive programming in the medium and heavy-duty sector. Nearing its sunset, GFAP was oversubscribed. Fleets cited financial barriers as the top concern for the adoption of fuel and GHG reducing technologies, and expressed the need for further incentives to help de-risk their investments in fuel-reducing technologies.

As a result, Budget 2022 announced an investment of almost $200 million over five (5) years for the recapitalization of the Green Freight Assessment Program, now renamed as the Green Freight Program (GFP). This 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.

The new Green Freight Program was designed with all the lessons learnt during the life span of its previous counterpart, the GFAP. Notable Program changes include the introduction of continuous intake processes and RFP calendars, which will allow companies to plan their investments well into the future. The Program has also increased the scope of eligible activities, as well as the funding amounts. Lastly, the Program has introduced grants, streamlining the process for receiving funding for a set list of eligible activities under Stream 1 for companies across Canada.

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