How much funding can be received?

Funds up to 50% of admissible expenses, capped at $5000000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Green Freight Program — Repower and Replace?

Green Freight Program — Repower and Replace is funded by Natural Resources Canada (NRCan)

What are Green Freight Program — Repower and Replace's eligibility criterias?

Applicants must own or have a long-term lease agreement for a fleet of one or more eligible freight transportation vehicles. If leasing, the lease agreement must be long-term (3 years or more post-project end date) with written authority from the lessor for modifications.

Green Freight Program — Repower and Replace

Last Update: June 13, 2025

Canada

Funding for Canadian freight industry to reduce emissions

Green Freight Program — Repower and Replace at a glance

Eligible Funding

Max. $5,000,000
Up to 50% of project cost

Timeline

Receipt of requests is now closed

Financing Type

Grant and Funding

Eligible Industries

Transportation and warehousing

Grant Providers

Natural Resources Canada (NRCan)

Status

Closed

Overview of the Green Freight Program — Repower and Replace program

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.

Financing 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.

Eligible projects & activities

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.

Examples of admissible projects:

$ 2,500,000

Replace diesel buses with electric alternatives

$ 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

$ 600,000

Repower fleet with dual fuel engine technology

Eligibility criteria of the Green Freight Program — Repower and Replace program

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.

Who is eligible?

Canadian freight companies
Not-for-profit organizations
Provincial, territorial, regional, or municipal governments or their departments or agencies
Indigenous businesses or community groups

Who is not eligible

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.

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.

Eligible geographic areas

Companies operating in Canada.

Eligibility criteria of the Green Freight Program — Repower and Replace program

Submission of an enhanced fleet energy assessment that references and recommends the activities proposed in the project application, meeting requirements specified in NRCan’s Fleet Energy Assessment Checklist.
Commitment to fueling new or repowered vehicles with a minimum average blend of 1% renewable or non-fossil fuels (with merit points awarded for a commitment of 40% or more).

How to apply to the Green Freight Program — Repower and Replace program

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.

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.

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.

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.

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.

Additional information

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.