What the GIFMP Industrial Facility Track Can Fund: Eligible Costs and Amounts
The Green Industrial Facilities and Manufacturing Program (GIFMP) — Industrial Facility Track is federal, cost‑shared funding from Natural Resources Canada (NRCan) that supports the implementation of energy efficiency and energy management solutions. This guide explains, in practical terms, what the GIFMP can fund, the eligible costs and activities, funding percentages, and the expense rules you need to plan for.
As of December 3, 2025, the Industrial Facility Track has historically supported up to 50% of eligible costs (up to 100% for Indigenous and not‑for‑profit organizations), with typical minimums of $40,000 and historical caps up to $10 million per proposal. Some communications noted a $5 million cap in later rounds; always verify current intake parameters in the official application package before budgeting.
Program Funding Overview
The GIFMP Industrial Facility Track targets Canadian industrial facilities engaged in energy‑consuming processes that physically or chemically transform materials or substances into new products. It funds both “soft” energy management capabilities (training, audits, energy managers, energy management systems) and “hard” energy efficiency retrofits (capital investments) tied to measurable energy performance improvements and greenhouse gas (GHG) reductions.
Key features of this NRCan industrial funding:
Cost‑shared contribution (not a loan or tax credit) with reimbursement based on eligible, documented expenses.
Typical cost share up to 50% of eligible costs; up to 100% for Indigenous and not‑for‑profit organizations.
Historical per‑proposal caps up to $10 million; some subsequent communications referenced up to $5 million. Caps and envelopes vary by intake.
Eligible activities must occur at a Canadian fixed industrial site and align with program goals, including Canada’s climate targets.
Costs are only eligible after the contribution agreement is signed and before the program’s stated cost‑eligibility end date (historically March 31, 2027 for one intake).
The program is national in scope and applies across Canada, including Ontario, Québec, British Columbia, Alberta, Saskatchewan, Manitoba, the Atlantic provinces, and the territories.
Funding Amounts & Rates
Funding coverage and amounts under the Industrial Facility Track are structured as follows:
Cost‑share rate:
Up to 50% of eligible project costs for most recipients.
Up to 100% for Indigenous and not‑for‑profit organizations.
Historical minimum and maximum:
Minimum contribution typically $40,000 (implied by minimum project size).
Historical maximum up to $10 million per proposal; some messaging in later rounds referenced up to $5 million. Current caps must be confirmed per intake.
Calculation method:
The contribution applies to eligible cost categories only.
Ineligible costs must be excluded from the claimed amounts.
Timing constraints:
Costs incurred before the agreement signature are ineligible.
Costs incurred after the stated cost‑eligibility end date are ineligible (historically March 31, 2027 for one intake).
Capital investments rule of thumb:
For energy efficiency retrofit equipment, end‑use must be non‑emitting (for example, electricity, renewable energy/biomass, hydrogen) at the point of use.
Capital projects must be accompanied by a recognized energy management system (EMS) or demonstrate one is already in place.
Illustrative cost‑share examples:
If a for‑profit manufacturer completes $2,000,000 in eligible activities (audits, EMS, and capital retrofits), the GIFMP contribution could be up to $1,000,000 at 50%.
If an Indigenous‑owned facility completes $1,200,000 in eligible activities, the contribution could be up to $1,200,000 at 100% (subject to intake caps and available budget).
Eligible Expenses
Eligible expenses are tied to five activity areas plus supporting implementation costs. Your project plan should connect each cost to a funded activity, the site’s energy performance baseline, and expected savings.
1) Training for energy management practitioners
Workforce development and training that raises competencies in industrial energy management.
Courses, workshops, and structured training that equip staff to identify savings, operate EMS/EMIS tools, and sustain improvements.
Reasonable training materials and instructor fees.
Outcomes should support in‑house capacity and persistent efficiency gains.
2) Energy assessments and audits
Facility energy assessments and audits that identify efficiency opportunities and GHG reductions.
Process Integration (PI) studies and Computational Fluid Dynamics (CFD) analyses to map energy use and thermal/process behaviour.
Measurement and analysis time, audit reports, and recommended project lists with savings estimates.
Activities should establish or refine the energy performance baseline and guide the retrofit roadmap.
3) Energy managers
Salaries and benefits for dedicated energy managers responsible for identifying opportunities, building an energy‑savings culture, guiding implementation, and tracking results.
Internal energy team coordination time directly tied to project planning, EMS operation, and reporting.
External professional services to supplement the energy manager function where justified.
4) Energy management systems (EMS)
Energy Management Information Systems (EMIS) consistent with NRCan guidance (hardware, software, integration).
ISO 50001‑compliant EMS recognized by 50001 Ready Canada, ISO 50001 certified EMS, or Superior Energy Performance certified EMS.
Custom EMS approaches with clear governance for monitoring, analysis, corrective actions, and continual improvement.
Reasonable licenses, configuration, and training to ensure effective EMS adoption.
5) Capital investments (energy efficiency retrofits)
Retrofit modifications or upgrades to energy‑consuming systems, processes, or infrastructure, including:
Boiler plant systems.
Compressed air systems (compressors, dryers, leak management, controls).
Domestic and process hot water systems.
Fan and pump systems (including variable frequency drives and controls).
Process furnaces, dryers, and kilns.
Refrigeration systems and heat recovery.
Steam and condensate systems, including waste heat recovery.
Metering equipment, automation, and control systems (instrumentation and software).
Capital investments must:
Be non‑emitting at the point of end use (for example, electric, renewable/biomass, hydrogen).
Be implemented with a recognized EMS as part of the project or demonstrate an EMS is already in place.
Be justified by energy and GHG outcomes in the project plan.
6) Supporting implementation costs
To enable the above activities, the following supporting costs are generally eligible when directly tied to the project:
Salaries and benefits of employees of the eligible recipient who are directly working on the project.
Professional services (engineering, specialized consultants, commissioning, software integration).
License fees, data purchases, certification costs (for example, ISO audits), regulatory compliance and inspection costs, construction insurance, and permits.
Reasonable travel directly required for project delivery at multi‑site industrial operations.
Notes on eligibility:
Costs must be necessary, reasonable, and directly attributable to the project’s scope at the Canadian industrial site.
Procurement should clearly separate eligible items (for example, non‑emitting retrofit equipment) from non‑eligible items.
Ineligible Expenses
Plan to exclude the following from your budget and claims:
Costs incurred before the contribution agreement is signed.
Costs incurred after the stated cost‑eligibility end date (historically March 31, 2027 for one intake).
New construction.
Investments related to fleet vehicles not used directly for an industrial process.
Lighting, warehouse, and building envelope measures.
Any expense not tied to the funded activities or not occurring at a Canadian industrial facility.
Additional practical cautions:
Routine maintenance, deferred maintenance catch‑up, and end‑of‑life replacements without documented energy performance improvement may be challenged.
Non‑separable costs that bundle ineligible items will likely be pro‑rated or rejected.
Taxes recoverable by the recipient are typically not claimable; confirm treatment in your agreement.
Expense Documentation Requirements
Strong documentation is essential to receive reimbursement under a NRCan contribution agreement. Build your file with:
Contracts, purchase orders, and vendor quotes specifying eligible equipment and services.
Invoices, proof of payment, and delivery/installation evidence.
Payroll records, timesheets, and role descriptions for internal labour charged to the project.
Technical documentation:
Equipment specifications demonstrating non‑emitting end‑use where applicable.
Commissioning reports and performance test results.
EMS/EMIS configuration records and access logs.
Audit and study materials:
Audit/assessment plans, data sets, analytical models (including PI and CFD), and final reports.
Regulatory records:
Permits, inspection certificates, and compliance confirmations.
Project governance:
Progress reports, risk logs, change approvals, and measurement and verification (M&V) plans.
Record‑keeping:
Maintain organized records for audit for the retention period specified in your agreement.
Tip: Ask vendors to itemize eligible components (for example, separate EMS software licenses from general IT bundles) to avoid disputes.
Examples of Funded Projects
The following examples illustrate how “what GIFMP funds” translates into real industrial projects. Amounts are indicative; actual approvals depend on intake rules and merit assessment.
1) Food processor — compressed air optimization and EMS
Scope:
Plant‑wide compressed air leak survey, new VFD compressors, heat recovery on compressors.
EMIS deployment with dashboards and alarms.
Energy manager 0.5 FTE for 12 months and operator training.
Budget (eligible): $1,600,000
Indicative funding:
For‑profit at up to 50%: up to $800,000.
Outcomes:
22% reduction in compressed air energy, 1.8 GWh/year savings, improved uptime.
2) Pulp and paper mill — steam/condensate and waste heat recovery
Scope:
Condensate return upgrades, trap management, low‑pressure steam header balancing.
Waste heat recovery to preheat process water.
ISO 50001 implementation with 50001 Ready Canada recognition.
Budget (eligible): $6,000,000
Indicative funding:
For‑profit at up to 50%: up to $3,000,000.
Outcomes:
7% site energy reduction, substantial GHG reductions, improved water use.
3) Indigenous‑owned metals fabrication — electrified process heating
Scope:
Replace fossil‑fuel process heater with electric non‑emitting alternative.
Controls, metering, commissioning, and workforce upskilling.
Energy manager support for SOPs and M&V.
Budget (eligible): $1,200,000
Indicative funding:
Up to 100%: up to $1,200,000 (subject to intake caps).
Outcomes:
Major direct emissions reduction, quality stability, lower maintenance.
Funding Disbursement & Claiming Process
Disbursement is governed by a NRCan contribution agreement and generally follows a reimbursement model:
Agreement execution:
The contribution agreement defines eligible cost categories, reporting cadence, and the final date for incurring costs.
Claims:
Submit periodic claims (for example, quarterly or by milestone) with invoices, proof of payment, and progress evidence.
Claims are reviewed for eligibility, reasonableness, and alignment with the approved project plan.
Holdbacks:
Agreements may include a holdback released upon satisfactory completion and final reporting.
Reporting and M&V:
Provide progress updates, commissioning results, and M&V data to demonstrate energy/GHG outcomes.
Final claim:
Submit within the deadline set in the agreement, with all supporting documentation.
Processing times vary by intake and workload. Build float into your cash flow planning.
Stacking Rules
Stacking refers to combining multiple public funding sources on the same costs. For GIFMP:
Stacking may be permitted provided you disclose all other government assistance and respect the maximum total government funding limit defined in the contribution agreement.
In practice, total government assistance often cannot exceed a specified percentage of eligible costs; this cap can vary by intake and recipient type.
You must report all other grants, subsidies, and incentives applied to the project, including provincial or utility programs in Ontario, Québec, British Columbia, Alberta, and other jurisdictions.
If stacking pushes total public funding over the limit, the GIFMP contribution will typically be reduced.
Always consult the current application package for intake‑specific stacking rules.
Real‑World Budgeting Tips
Use these practical tactics to align your budget with GIFMP eligible costs and maximize your claimable spending:
Map costs to activities:
Organize your budget by the five eligible activity areas plus supporting costs. This makes eligibility clear.
Separate ineligible items:
Carve out lighting, building envelope, new construction, and non‑process fleet costs into non‑claimable lines.
Demonstrate non‑emitting end‑use:
Include manufacturer datasheets and design notes for electrified or renewable/biomass/hydrogen equipment.
Tie capital to EMS:
Plan EMS/EMIS implementation or upgrades in parallel with capital retrofits; reference ISO 50001 or 50001 Ready where applicable.
Document internal labour:
Use clear timesheets and role descriptions for staff time charged to the project.
Time your procurement:
Align purchase orders and installation with agreement dates; avoid pre‑signature commitments.
Budget for M&V:
Include meters, sensors, and analyst time to verify savings; strong M&V supports claims.
Plan contingencies:
Carry a contingency on non‑eligible costs and long‑lead items to avoid scope cuts that reduce savings.
Coordinate with provincial/utility incentives:
If stacking, confirm combined assistance stays within allowable limits and disclose early.
Conclusion
The GIFMP Industrial Facility Track funds a comprehensive set of energy management and energy efficiency activities — from training, audits, energy managers, and EMS/EMIS to capital retrofits on core industrial systems — with cost‑shared coverage typically up to 50% (and up to 100% for Indigenous and not‑for‑profit organizations). Success depends on aligning your scope to eligible activities, proving non‑emitting end‑use for retrofits, and maintaining meticulous documentation for reimbursement. Amounts, caps, and dates vary by intake; confirm the current application package, plan your budget around eligible costs, and prepare your claims process early to capture the full value of this NRCan industrial funding.
