Canadian government opens second round of funding for Green Freight Program

The second wave of funding for a Canadian program intended to help drivers and fleets reduce their fuel consumption and greenhouse gas emissions is underway.

On Aug. 18, Natural Resources Canada announced that applications are now open for Stream 2 of the Green Freight Program. Announced in December, the government says the $200-million program will help “fleets reduce their fuel consumption and greenhouse gas emissions through fleet energy assessments, fleet retrofits, engine repowers and fuel switching.”

“Canadian businesses are adopting innovative and efficient technologies to help drive down costs and pollution at the same time,” Jonathan Wilkinson, Minister of Energy and Natural Resources, said in a statement. “Applications for the second stream of this program are now open for 90 days, bringing us one step closer to a healthier environment and more prosperous economy for all Canadians.”
According to the agency, greenhouse gas emissions from the transportation sector account for about one-quarter of the country’s overall emissions. Pablo Rodriguez, Minister of Transport, said the start of Stream 2 funding will continue to advance the country’s goals for reduced emissions.

“The future of our roads is a greener, cleaner transport sector. Medium- and heavy-duty vehicles are a key contributor to pollution in Canada, and today’s announcement is great news to support fleets across the country in making the switch to cleaner choices,” Rodriguez said in a statement. “The Green Freight Program is one of our many actions toward reducing pollution on our roads and building a cleaner transportation system that benefits all Canadians.”

The deadline to apply for funding under Stream 2 of the program is Nov. 16.

Additionally, applications are still being accepted for Stream 1 of the program.

Under the first phase, carriers are 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.

To qualify, carriers must complete an energy assessment. Applicants can also choose to conduct a self-assessment, following NRCan’s Assessment Guidelines.

Once the assessment is complete, carriers are 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.

Applications for Stream 1 of the program will be accepted through March 31, 2027, or until funding has been exhausted.

The Government of Canada has a goal for 100% of medium- and heavy-duty vehicles sold in the country to be near-zero-emission vehicles by 2040. It is using initiatives like the Green Freight Program, along with Transport Canada’s Incentive for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program, in hopes of meeting that goal. LL