Green Freight Program: How to Get Funding Step by Step

As businesses and transportation fleets move toward more sustainable operations, the Green Freight Program in Canada offers financial support to help companies reduce fuel consumption and greenhouse gas emissions. Administered by Natural Resources Canada (NRCan), this initiative funds fleet energy assessments, vehicle retrofits, and low-carbon vehicle replacements.

If you’re a fleet operator looking to leverage this program, here’s a step-by-step guide on how to apply for funding and maximize the benefits. At ET Transport, we understand the importance of fuel efficiency and sustainability in the trucking industry. Whether you want to optimize your fleet or transition to greener technologies, this guide will help you navigate the process.

Step 1: Determine Your Eligibility

Before applying for funding, ensure that you meet the eligibility requirements set by NRCan. The Green Freight Program is open to various organizations, including:

Companies operating commercial fleets in Canada
Industry and research associations
Indigenous organizations
Non-profit organizations
Municipal, provincial, and territorial governments

Your fleet must include heavy-duty vehicles (Classes 2B to 8) licensed and insured for commercial use. Eligible vehicles include cargo vans, cutaway vans, step vans, and off-road vehicles used for business operations.

Step 2: Choose the Right Funding Stream

The Green Freight Program is divided into two streams, each focusing on different aspects of energy efficiency:

Stream 1: Assess and Retrofit

This stream helps companies evaluate their fleet’s energy efficiency and invest in proven fuel-saving technologies. It covers:

Fleet Energy Assessments: The program funds up to 50% of the assessment cost, with a cap of $20,000 for basic assessments and $40,000 for enhanced assessments.
Equipment Retrofits: Businesses can receive up to 50% of the cost of approved retrofit technologies such as aerodynamic devices, anti-idling technologies, auxiliary power units, and low rolling resistance tires. The total funding cap per applicant is $250,000.

Stream 2: Repower and Replace

This stream supports businesses that want to transition to low-carbon freight solutions. It provides funding for:

Engine Repowers: Replacing an old diesel engine with a cleaner, more fuel-efficient alternative.
Vehicle Replacements: Purchasing new vehicles powered by low-carbon fuels, with funding covering up to 50% of the incremental cost.

Stream 2’s funding is more substantial, with a maximum of $5 million per project. However, the call for proposals for this stream is closed. Keep an eye on NRCan’s website for updates.

Step 3: Conduct a Fleet Energy Assessment

A Fleet Energy Assessment is essential for businesses looking to optimize fuel efficiency. If you are applying for funding under Stream 1, you must conduct a third-party assessment that meets NRCan’s criteria. The evaluation provides insights into:

Current fuel consumption and emission levels
Potential improvements in fuel efficiency
Recommended retrofits and replacements

If you prefer a self-assessment, you can still use it to guide your decisions, but only third-party assessments are eligible for funding reimbursement.

Step 4: Prepare Your Application

Once you’ve determined eligibility and completed your fleet assessment, it’s time to prepare and submit your application. Here’s what you’ll need:

Business Information: Provide details about your company, fleet size, and operations.
Assessment Report: Include a copy of your Fleet Energy Assessment report.
Project Proposal: Detail the equipment retrofits or vehicle replacements you plan to implement.
Cost Estimates: Provide quotes from suppliers for the equipment or vehicle replacements.
Financial Plan: Demonstrate how you will cover the non-funded costs.

Applications for Stream 1 are accepted continuously until March 31, 2027. Stream 2 applications are only open during specific proposal periods.

Step 5: Submit Your Application to NRCan

Submit your completed application through NRCan’s online portal or by email as specified in the program guidelines. Be sure to include all required documentation to avoid delays in processing.

Once submitted, NRCan will review your application based on:

Completeness of documentation
Potential fuel and emissions savings
Alignment with program objectives

Step 6: Implement Your Project

If your application is approved, you’ll receive funding for the project. The following steps involve:

Purchasing and installing approved fuel-saving equipment
Ensuring all retrofits meet program standards
Keeping records of all expenses and invoices

For Stream 2, engine repowering or vehicle replacement projects will require additional documentation to verify compliance with NRCan’s guidelines.

Step 7: Report Your Results

After completing your project, you must submit a report detailing the improvements achieved. This report typically includes:

Before-and-after fuel consumption data
Emission reduction outcomes
Receipts and proof of expenditures

NRCan may also require periodic follow-ups to track long-term efficiency gains.

Final Thoughts

The Green Freight Program is a fantastic opportunity for Canadian fleet operators to improve fuel efficiency, cut costs, and reduce environmental impact. At ET Transport, we know firsthand how fuel efficiency impacts business performance, and programs like this can make a real difference. Whether you’re retrofitting your fleet or investing in low-carbon technologies, taking advantage of available funding can accelerate your transition to greener operations.

By following these steps—checking eligibility, selecting the right funding stream, conducting a fleet assessment, preparing a solid application, and implementing fuel-saving measures—you can maximize the benefits of the Green Freight Program and contribute to a more sustainable transportation industry.