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Government of Canada Launches Green Freight Program

Natural Resources Canada (NRCan) has opened requests for grants under Stream 1 of the recapitalized Green Freight Program (GFP), with a focus on assisting fleets to reduce fuel consumption and greenhouse gas (GHG) emissions from on-road freight operations by offering grants up to 50% towards the cost of fleet energy assessments and truck equipment retrofits.

Program details including the application process are now available through NRCan’s website.

To take advantage of the program, applicants must first complete a fleet energy assessment. NRCan offers up to 50% of the cost towards a third-party fleet energy assessment being completed.

Applicants can also choose to conduct a self-assessment, following NRCan’s Assessment Guidelines. With a valid fleet assessment in hand, companies qualify to receive grants towards recommended fleet retrofit activities.

NRCan has established a list of approved retrofit technologies, of which a percentage of the cost will be eligible for reimbursements up to a maximum cap per device. The list of eligible devices/technologies can be found here. The maximum cap for all retrofits will be reviewed on an annual basis.

To qualify for reimbursement, all eligible purchases must be made and equipment installed after December 12, 2022. Grants are available on a first come, first-serve basis, or until funding runs out for NRCan’s fiscal year (March 31).

The process to receive a grant is simple. Once companies have completed and paid for all eligible activities, they can submit their grant application to NRCan via e-mail.

Through consultations with the Canadian Trucking Alliance (CTA) and other stakeholders, the Government of Canada has recognized that decarbonization in the long-haul trucking sector will be a gradual process, and that financial barriers are the top concern impacting the adoption of fuel and GHG reducing technologies for fleets. This fact was highlighted under Budget 2022, which outlined an investment of nearly $200M over five years announced for the GFP program.

“We thank the Government of Canada and National Resources Minister Jonathan Wilkinson for their leadership and for recognizing that significant support is required to de-risk investment and encourage adoption of low-carbon technologies for fleets, particularly in the face of rising costs and inflation currently impacting trucking operators across the country,” says Lak Shoan, director of Policy and Industry Awareness Programs for CTA.

“CTA looks forward to working with federal officials to ensure the success of this program and the expansion of these types of programs in the future. This will further accelerate uptake of green technology in our sector to meet our joint climate and emissions reduction goals.”

NRCan will also be launching a second stream of the GFP in Spring 2023. It will offer funding contribution towards engine repowers, purchase of alternative fuel trucks (e.g renewable natural gas & hybrid applications) and large scale logistical best practice projects. The program will contribute up to 50 percent of the total project costs up to a maximum of $5 million per agreement. Further details will be made available by NRCan in the spring.

Trucking operators are also strongly encouraged to take advantage of Transport Canada’s incentives for medium-and heavy-duty zero-emission program (iMHZEV), which will provide about 50 percent of the cost difference between traditional diesel vehicle and a zero-emission alternative to assist trucking fleets in reducing their carbon footprint. More information on the program is available here.

NRCan officials will be planning a webinar in early 2023 to discuss the GFP program, including the application process and other frequently asked questions.

Carriers with questions of the program, application process or related questions can contact NRCan at freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca.


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