Canada opens applications for Green Freight Program

December 15, 2022

Ryan Witkowski

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A Canadian program with the goal of helping drivers and fleets reduce their fuel consumption and greenhouse gas emissions is now accepting applications.

On Dec. 12, Natural Resources Canada began the first of a two-step funding stream for the Green Freight Program. According to the agency, the transportation industry is the second largest source of greenhouse gas emissions in Canada. The incentive program – which has a total investment of $200 million over the next five years – aims to reduce those emissions by offering incentives to carriers for fleet energy assessments, fleet retrofits, engine repowers, logistical best-practice implementation and the purchase of low carbon vehicles.

“Freight transportation is critical to the Canadian economy yet currently accounts for over 10 percent of Canada’s overall climate-warming emissions,” the agency said. “That is why the government of Canada is investing in initiatives that build a low-emissions transportation sector and help companies thrive in a decarbonized industry while creating healthier, affordable, more sustainable communities for future generations.”

The agency says the first phase of funding “aims to increase the knowledge and capacity of the on-road freight transportation sector to adopt energy efficiency measures tailored to operational needs by providing financial support.” In phase one, carriers will be eligible for grants for third-party fleet energy assessments and equipment retrofits to trucks and trailers. The grant would cover 50% of the cost of an energy assessment, up to $40,000.

Carriers must complete an energy assessment to be eligible for other grants through the program. Applicants can also choose to conduct a self-assessment, following NRCan’s Assessment Guidelines.

Once the assessment is complete, carriers would be eligible for grants for equipment retrofits. The grant would cover 50% of the cost of the upgrade, with a cap on the total value of the grant depending on the device purchased. To qualify for reimbursement, all eligible purchases must be made and equipment installed after Dec. 12, 2022. A list of approved retrofit upgrades, along with their maximum grant values, can be found on the agency’s website.

“By investing in fleetwide solutions, the government of Canada is supporting truckers in reducing emissions while maintaining our vital supply chains and getting Canadians the products they need on time,” Omar Alghabra, Canada’s minister of transport, said in a statement. “Whether they are consumers or truck drivers, folks across Canada are making the switch to cleaner options that also save them money at the pump.”

The Canadian Trucking Alliance has applauded the government for providing the program to carriers. Lak Shoan, director of policy and industry awareness programs for the alliance, said the program will help carriers as they work to adopt new technologies.

“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,” Shoan said.

There is a $250,000 maximum grant amount per applicant. Grants will be awarded on a first-come, first-served basis. Applications will be accepted until funding is no longer available. LL

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