Green Manufacturing and Decarbonization Funding in British Columbia for 2025

Overview: Why green manufacturing grants matter in BC

British Columbia has a strong industrial base spanning wood products, pulp and paper, food processing, cement, metals and mining, shipbuilding, and advanced manufacturing. Decarbonization funding in BC helps organizations transition to net‑zero manufacturing by supporting plant electrification, process optimization, waste heat recovery, and clean technology adoption. Businesses can stack provincial CleanBC grants, BC Hydro industrial rebates, FortisBC industrial incentives, and federal clean technology tax credits to reduce CAPEX and accelerate timelines. For many applicants, these programs provide non‑repayable contributions, matching grants, rebates, and performance‑based incentives that lower the cost of scope 1 and scope 2 abatement while enhancing productivity and resilience.

Program landscape in British Columbia

BC’s green industrial funding ecosystem brings together:

- CleanBC grants and the CleanBC Industry Fund for industrial GHG reduction programs in BC.

- BC Hydro industrial rebates for electrification and energy efficiency measures, including custom incentives, demand response incentives for large industrial customers, and site electrification studies.

- FortisBC industrial incentives for high‑efficiency equipment, fuel switching, renewable natural gas (RNG) procurement, and interconnection.

- Federal programs and tax measures such as the clean technology investment tax credit (clean technology ITC), CCUS ITC, clean hydrogen ITC, and clean electricity ITC, as well as the Strategic Innovation Fund (clean tech streams), the Low Carbon Economy Fund (LCEF) for BC projects, Sustainable Development Technology Canada (SDTC) funding, NRC IRAP green projects, and the Clean Fuels Fund for BC industry.

- Complementary supports including SR&ED for clean tech manufacturing R&D, accelerated CCA for clean equipment, Canada Growth Fund instruments, Indigenous loan guarantees, export growth supports, and pilot and demonstration funding.

Benefits for manufacturers and processors

- Reduce energy costs through electrification rebates, VFD and motor incentives, compressed air optimization grants, and advanced controls.

- Cut emissions intensity with process heat decarbonization funding, electric boiler grants, industrial heat pumps, and switching to low‑carbon fuels such as RNG, biomass, or clean hydrogen.

- Improve reliability and power quality with battery storage incentives for peak shaving, demand charge management, and industrial microgrid funding.

- Build long‑term compliance capacity via ISO 50001 funding, energy management support, GHG inventory funding, and MRV (measurement, reporting, verification) tooling.

- Strengthen competitiveness through manufacturing modernization grants, digital twins for energy reduction, industrial IoT analytics, automation for decarbonization, and circular economy manufacturing funding.

What projects are eligible? (typical categories)

Eligibility varies by program, but common categories include:

- Plant‑wide energy efficiency upgrades (motors, VFDs, pumps, fans, compressed air systems, heat exchangers).

- Process electrification and heat decarbonization (industrial heat pumps, electric boilers, induction heating, process steam electrification, kiln electrification, biomass boiler funding).

- Waste heat recovery and heat‑to‑power systems.

- Onsite renewable energy for factories (industrial solar PV or solar thermal for process heat), battery energy storage, and demand response enrollment.

- Fuel switching to RNG or clean hydrogen, including electrolyzer pilots tied to industrial heat.

- CCUS pilots, carbon utilization in construction materials, and mineralization of CO2.

- Energy management systems, submetering, ASHRAE and custom energy studies, electrification feasibility study funding, and ISO 50001 implementation.

- Sector‑specific retrofits (refrigeration system upgrades for cold storage, ammonia refrigeration optimization, food processing energy grants, pulp and paper decarbonization funding, cement plant decarbonization grants).

Regional focus: Vancouver, Victoria, Surrey, Kelowna, Prince George and beyond

- Vancouver and Burnaby: clean technology adoption grants for advanced manufacturing, battery storage incentives, and industrial retrofits in urban facilities.

- Surrey, Richmond, New Westminster, Coquitlam, Langley, and Maple Ridge: factory energy rebate programs, plastics manufacturing energy grants, machinery energy upgrades, and custom industrial incentives.

- Victoria and Nanaimo: modernization in marine, shipbuilding, seafood processing, and cold storage efficiency incentives.

- Kelowna and Kamloops: plant electrification incentives and industrial energy audit funding for food and beverage, wood products, and light manufacturing.

- Prince George, Terrace, and Port Alberni: forestry decarbonization, sawmill electrification, biomass boiler funding, and Port Alberni sawmill electrification projects.

- Kitimat and northern corridors: smelter decarbonization, mining and metals GHG funding, and grid capacity upgrades for electrification.

CleanBC programs: decarbonization funding in BC

CleanBC grants for industry typically target measurable GHG reductions, with clear MRV requirements and cost‑share frameworks aligned to abatement potential. Manufacturers can pursue funding to electrify process heat, implement heat recovery systems, install industrial heat pumps, or integrate low‑carbon fuels. Many applicants prepare an industrial decarbonization roadmap first, supported by feasibility study grants and energy studies that identify capital projects with high reductions per dollar invested. The CleanBC Industry Fund and related low carbon economy funding streams can support large projects across pulp and paper, cement, mining, and food processing, including scope 1 fuel switching and scope 2 electrification.

Stacking with federal instruments

CleanBC support is often stackable with federal clean technology ITCs, allowing cost‑effective CAPEX for electric boilers, VFDs, motors, solar thermal, and battery storage. For CCUS pilots or clean hydrogen for industry, organizations may explore CCUS ITC and the clean hydrogen ITC, alongside pilot and demonstration funding from SDTC, the Clean Fuels Fund, or SIF. Applicants should also consider SR&ED for process decarbonization R&D, accelerated CCA for clean assets, and potential blended finance with the Canada Growth Fund for large industrial projects.

BC Hydro industrial incentives: electrification and efficiency

BC Hydro offers industrial rebates, custom incentives, demand response incentives for large industrial customers, and site electrification study support. Manufacturers use these programs to:

- Electrify process heat and steam, including electric boiler grants and industrial heat pump incentives.

- Improve efficiency through VFD rebates, high‑efficiency motor incentives, compressed air system grants (including LDAR and leak detection), and advanced controls with submetering.

- Optimize power quality and reduce demand charges via peak shaving battery funding, demand response enrollment bonuses, and power factor correction incentives.

- Prepare projects through custom energy studies, IR cameras and energy audits funding, and ASHRAE or ISO 50001‑aligned assessments.

FortisBC industrial incentives: gas efficiency and RNG

For facilities using natural gas, FortisBC industrial incentives can fund high‑efficiency equipment, heat recovery, and process optimization. RNG procurement incentives help lower lifecycle emissions and support scope 1 reductions. For some sites, FortisBC can support RNG interconnection funding and industrial heat recovery systems, including heat exchangers, heat tracing and insulation upgrades. Combined heat and power (CHP) to electric conversion funding may be considered where electrification is feasible; otherwise, advanced efficiency and waste heat measures can deliver near‑term carbon intensity reduction while planning grid upgrades.

Federal clean technology supports for BC manufacturers

- Clean technology investment tax credit: supports eligible clean tech property; useful for industrial solar, battery storage for peak shaving, and other approved assets.

- CCUS ITC Canada: relevant for carbon capture pilots in cement and process industries, including mineralization and carbon utilization pathways.

- Clean hydrogen ITC: supports electrolyzers and hydrogen production for industrial heat switching or feedstock, potentially tied to hydrogen hub industry initiatives.

- Clean electricity ITC: can support clean electricity projects that enable large‑scale plant electrification, microgrids, and load displacement.

- Strategic Innovation Fund (clean tech streams): co‑funds large transformative projects for industrial decarbonization and clean technology deployment.

- Low Carbon Economy Fund (BC projects): supports GHG reductions from industrial facilities, including fuel switching and heat recovery.

- SDTC funding: funds pilot and demonstration projects that de‑risk new technologies for industrial decarbonization.

- NRC IRAP green projects: supports R&D and early adoption for SMEs in green manufacturing and process innovation.

Sector‑specific guidance and examples

Pulp and paper, wood products, and forestry

- Pulp and paper decarbonization funding can support biomass boiler upgrades, electrified process heat, and heat recovery. Wood products facilities may access sawmill electrification grants in northern BC, Port Alberni, and Prince George, with biomass energy for industry and waste heat‑to‑power options.

Cement, concrete, and construction materials

- Cement plant decarbonization grants in BC focus on kiln electrification pathways, alternative fuels, clinker substitution incentives, and CCUS pilots for process emissions. Carbon utilization in construction materials funding and mineralization of CO2 can complement efficiency work.

Mining and metals

- Mining and metals GHG funding in BC can support electrification of material handling, battery‑electric equipment, ventilation optimization, and grid interconnection upgrades. Biocarbon for metallurgy and hydrogen switching may be explored in certain processes.

Food and beverage processing

- Food processing energy grants in BC include high‑efficiency refrigeration system upgrades, ammonia refrigeration optimization incentives, cold storage efficiency, and heat pump for process water funding. Water efficiency grants for food processors can be paired with energy retrofits.

Marine, shipbuilding, and logistics

- Clean transportation for industry funding can support fleet electrification for manufacturers, electric forklifts rebates, charging infrastructure, and on‑site logistics decarbonization. Port and shipyard facilities may integrate demand response and battery storage for load management.

Planning your roadmap: from audit to implementation

1. Establish your baseline with a GHG inventory and plant‑wide energy audit (ASHRAE or custom).

2. Build an industrial decarbonization roadmap prioritizing lifecycle emissions reduction, technical readiness, grid capacity, and cost‑effectiveness.

3. Run feasibility studies for electrification, heat recovery, battery storage, and fuel switching to validate economics and grid interconnection.

4. Sequence quick wins (VFDs, motors, compressed air) alongside larger CAPEX (electric boilers, industrial heat pumps, CCUS pilots).

5. Align MRV, ISO 50001 or energy management funding to ensure continuous improvement and transparent reporting.

6. Prepare to stack programs: CleanBC grants + BC Hydro industrial rebates + FortisBC incentives + federal ITCs + SR&ED/accelerated CCA.

7. Plan permitting and interconnection timelines; consider grid capacity upgrades and power interconnection upgrades funding.

Application strategy: improve your success rate

- Match the right program to the right measure: demand response incentives for large industrial customers differ from capital rebates or CleanBC grants.

- Demonstrate cost‑effective GHG reduction with credible MRV, realistic schedules, and procurement readiness.

- Include a robust project governance plan: safety upgrades during electrification, training grants for operating new electric equipment, and ESG reporting alignment.

- Show shovel‑readiness with vendor quotes, metering plans, and a commissioning strategy.

- Outline stacking rules and avoid double‑counting; clarify how federal clean technology ITCs and provincial incentives interact.

- Engage early with utilities on electrified process heat, battery energy storage interconnection, and demand charge management.

Financial structuring and blended funding

Industrial decarbonization support in BC often combines:

- Matching grants or non‑repayable contributions for capital costs.

- Rebates and performance‑based incentives for verified savings (e.g., efficiency projects, demand response).

- Tax credits (clean technology ITC, CCUS ITC, hydrogen ITC, clean electricity ITC) to reduce net CAPEX.

- Accelerated depreciation (accelerated CCA) for clean assets to improve after‑tax returns.

- Blended finance such as loan guarantees, green bond financing for manufacturing, and support from the Canada Growth Fund for large projects with strategic value.

Measurement, reporting, and verification (MRV)

Programs typically require pre‑ and post‑implementation measurement and verification. Plan for submetering, data acquisition, and analytics to quantify energy savings and GHG abatement. MRV funding can cover metering hardware, industrial analytics for energy, IR cameras, and reporting systems aligned with ISO 50001. Comprehensive MRV supports ESG compliance for manufacturing in BC and facilitates carbon intensity reduction claims, carbon tax relief programs, and potential industrial carbon credits.

Indigenous partnerships and inclusive growth

BC prioritizes partnerships with First Nations and Indigenous‑led clean industry funding. Manufacturers can structure Indigenous partnerships for shared equity or benefit agreements, explore Indigenous loan guarantees for clean projects, and co‑develop supply chain decarbonization initiatives. These collaborations advance local employment, energy sovereignty, and regional resiliency while enabling access to additional funding pathways.

Key technologies and measures

Electrified process heat

- Electric boilers, industrial heat pumps, induction heating, process steam electrification, kiln electrification for cement, and heat pump for process water.

Heat recovery and optimization

- Heat exchangers, waste heat to power, insulation and heat tracing, steam trap replacement, and heat networks or district energy where applicable.

Power systems and storage

- Battery storage for peak shaving, demand response enrollment, microgrids, power factor correction, harmonics solutions, and grid capacity upgrades for electrification.

Digital and advanced controls

- Advanced metering and submetering, digital twins for energy reduction, industrial IoT optimization, AI‑driven energy analytics, and process digitalization grants.

Fuel switching and clean fuels

- RNG procurement incentives, biogas to RNG upgrades, biomass boiler funding, clean hydrogen for industry, electrolyzer pilots, and alternative fuels for cement kilns.

CCUS and utilization

- Carbon capture pilots, mineralization of CO2, and carbon utilization in construction materials.

City‑level examples and keywords

- Vancouver manufacturing decarbonization grants: automation for decarbonization, battery energy storage grants, and ISO 50001 funding.

- Surrey factory energy rebate programs: variable frequency drive rebates, compressed air leak detection grants, and high‑efficiency motor incentives.

- Richmond industrial energy retrofit funding: refrigeration system upgrade funding and ammonia refrigeration optimization incentives for cold storage.

- Burnaby clean technology adoption grants: industrial solar grants, demand response incentives, and process optimization funding.

- Kelowna plant electrification incentives: electric boiler grants and electrification feasibility study funding.

- Kamloops industrial energy audit funding: ASHRAE audits and GHG inventory funding to prepare CleanBC applications.

- Nanaimo energy efficiency grants for seafood processing: heat recovery, cold storage efficiency, and water‑energy integration.

- Prince George forestry industry decarbonization funding: biomass energy for industry, sawmill electrification, and wood products low‑carbon funding.

- Abbotsford agri‑food processing efficiency rebates: motors, VFDs, compressed air optimization, and process heat pumps.

- Victoria manufacturing modernization grants: circular economy manufacturing funding, industrial recycling equipment grants, and zero‑waste manufacturing funding.

Compliance, ESG, and reporting

Industrial decarbonization support aligns with ESG and compliance requirements. Funding can support scope 1/2 abatement, supplier engagement programs for scope 3, and plant‑wide energy management. Programs may encourage lifecycle emissions reduction, MRV, and continuous improvement funding to maintain performance over time. Applicants should integrate ESG reporting grants, nature‑based solutions in supply chains, and carbon offset project development where relevant.

Timelines, deadlines, and readiness

Deadlines for BC industrial decarbonization grants in 2025 vary by program and call. Applicants should maintain a rolling pipeline of feasibility studies, tender‑ready designs, and interconnection applications to meet windows quickly. A clear application checklist—covering eligibility, baseline data, engineering, vendor quotes, project budget, MRV plan, and stacking strategy—reduces risk and improves success.

Conclusion: Building a bankable decarbonization portfolio

Manufacturers in British Columbia can de‑risk their net‑zero transition by combining CleanBC grants, BC Hydro industrial rebates, FortisBC industrial incentives, and federal tax credits. Prioritizing electrify process heat, heat recovery funding, battery storage incentives, and fuel switching creates a balanced portfolio that lowers emissions and operating costs. With credible MRV, ISO 50001 alignment, and thoughtful Indigenous partnerships, organizations can secure financing, meet ESG goals, and build sustainable manufacturing in BC.