
Green Freight Program — Repower and Replace
grant_single|update March 27, 2025
Canada
Funding for Canadian freight industry to reduce emissions
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Transportation and warehousing
grant_single|grantors
- Natural Resources Canada (NRCan)
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Green Freight Program — Repower and Replace provides non-repayable contributions of up to $5,000,000 per project to support Canadian freight companies in reducing GHG emissions through the repowering of existing vehicles, purchasing low-carbon alternative fuel vehicles, and implementing logistical best practices. This competitive program aims to facilitate energy-efficient improvements in freight fleets across Canada.
grant_single_labels|terms_and_conditions
- The program offers cost-shared, non-repayable contributions up to $5,000,000 for projects involving vehicle repowering and purchasing alternative fuel vehicles.
- Funding is provided up to 50% of total project costs, with certain applicants eligible for up to 75% depending on their organization type, such as not-for-profits and Indigenous groups.
- For logistical best practices projects, the maximum funding provided is $1,000,000.
- Total funding from all government levels cannot exceed 75% of the project costs unless the applicant is a government or Indigenous organization, where it can go up to 100%.
- Incremental funding is available for purchasing low-carbon vehicles, covering 50% of the price difference compared to conventional vehicles.
- Organizations must provide a combination of cash, in-kind contributions, and potentially other government source funding for the remaining project costs.
grant_single_labels|projects
- Repowering existing vehicles to operate with lower-carbon or zero-emission alternative fuel sources.
- Purchasing new low-carbon alternative fuel vehicles.
- Implementing logistical best practices to improve fuel efficiency and reduce emissions during goods transportation.
grant_single|admissibleProjectsExample
$ 1,000,000
Upgrade trucks with renewable diesel systems
$ 1,750,000
Introduce low-carbon transit buses
$ 900,000
Transition to renewable-fuel powered service trucks
$ 2,500,000
Replace diesel buses with electric alternatives
$ 600,000
Repower fleet with dual fuel engine technology
grant_single_labels|admissibility
- Applicants must own or have a long-term lease agreement for a fleet of one or more eligible freight transportation vehicles.
- Projects must fall under one of the following categories: repowering existing vehicles, purchasing low-carbon alternative fuel vehicles, or implementing logistical best practices.
- The proposed projects must have the written authority from the lessor to make vehicle modifications, if applicable. A copy of the long-term lease agreement must be provided at the time of application.
- Applicants must submit an enhanced fleet energy assessment with their proposal, conducted by either the applicant or a third-party energy assessor on or after January 1, 2019.
- Proposals from not-for-profit organizations, or provincial, territorial, regional, or municipal governments, or Indigenous businesses or community groups may request an increase in the maximum funding payable.
- All applications for purchasing low-carbon alternative fuel vehicles must include a commitment to using a minimum average blend of 1% renewable or non-fossil fuels from the first refueling to March 31, 2029.
grant_eligibility_criteria|who_can_apply
- Canadian freight companies
- Not-for-profit organizations
- Provincial, territorial, regional, or municipal governments or their departments or agencies
- Indigenous businesses or community groups
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies related to softwood lumber due to ongoing trade disputes. The restrictions ensure that funds are directed toward sectors beneficial to the program's environmental goals.
- Softwood lumber companies.
- Companies vertically integrated with softwood lumber production.
grant_eligibility_criteria|eligible_expenses
- Costs for repowering existing vehicles, including engines and drive trains, to operate on lower-carbon or zero-emission fuels.
- Incremental costs for purchasing low-carbon, alternative fuel vehicles compared to conventional diesel vehicles.
- Other project costs associated with the purchase of new vehicles powered by low-carbon alternative fuels.
- Costs for implementing logistical best practices aimed at improving fuel efficiency and reducing emissions.
grant_eligibility_criteria|zone
This grant is open to companies and organizations that are legal entities validly incorporated or registered within Canada. It is intended to support projects across the country by providing funding to eligible Canadian applicants.
- Any company incorporated or registered in Canada.
- Industry associations within Canada.
- Research and standards organizations based in Canada.
- Indigenous and community groups in Canada.
- Canadian academic institutions.
- Provincial, territorial, regional, or municipal governments or their departments/agencies in Canada.
grant_single_labels|criteria
The evaluation and selection of projects for this grant are based on specific merit criteria to ensure the proposed projects align with the program's objectives and available resources.
- Company experience: Includes level of experience and workforce diversity, with merit points for employing Indigenous and women employees in non-administrative roles.
- Business operations: Merit points for fleets that travel 50% or more of their kilometres within Canada.
- Project description: Expected reduction in diesel consumption and improvements to the fleet.
- Participation in sustainability initiatives: Evaluation of existing fuel and GHG reduction initiatives.
- Project outcomes and benefits: Estimation of fuel savings and GHG reductions, and demonstration of additional economic, social, and environmental impacts.
- Project timelines: Reasonable timeline with key milestones and expected expenses.
- Feasibility plan: Includes a fuelling network assessment and servicing plan for alternative fuel trucks.
- Reporting requirements: Demonstrated ability to track fuel consumption metrics accurately.
grant_single_labels|apply
1
Complete Application Package
- Fill out the application form provided by NRCan.
- Ensure that all required supporting documents are compiled, including a completed green freight assessment, quotes for proposed activities, proof of funding, and any additional supporting documentation for assertions.
- Include a signed and dated attestation from a duly authorized officer of your organization.
2
Prepare Supporting Documentation
- Ensure all supporting documents are saved in PDF format.
- Ensure the total file size of attachments doesn’t exceed the web form's limit; otherwise, prepare to send the excess by email.
3
Submit Application via NRCan Web Form
- Visit NRCan’s application web form to submit your completed application package.
- Attach all required documents through the web form.
- Submit the application by 23:59 Eastern Standard Time, November 16, 2023.
4
Send Additional Documentation by Email (if needed)
- If your electronic submission exceeds the maximum file size, forward additional attachments by email.
- Ensure the subject line contains the project name and applicant's name when sending these additional documents.
- Send to the email address: freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca.
5
Obtain Confirmation of Submission
- Wait for a notification from the program acknowledging receipt of your application.
- Consider your application successfully received only once you have this acknowledgment from NRCan.
grant_single_labels|otherInfo
- The maximum funding per project proposal varies depending on the activity type, but overall funding from all government levels cannot exceed specific percentages of total project costs unless specific conditions apply.
- Applicants may enhance their applications by ensuring a commitment to fuel new or repowered vehicles with a minimum of 40% renewable or non-fossil fuels, impacting their merit points.
- Successful applicants are required to submit a final report including vehicle registration, ownership documentation, and measureable project outcomes, upon completion.
- Documentation such as long-term lease agreements and written permissions are required for applicants proposing modifications under certain conditions.
- Collaborations with Indigenous businesses or community groups may allow for increased funding, emphasizing the importance of inclusivity in project proposals.
- Applications must include a comprehensive enhanced fleet energy assessment, which can be conducted internally or by third-party experts.
grant_single_labels|contact
freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca
Apply to this program
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