Closed
Green Freight Program — Repower and Replace
Funding for Canadian freight industry to reduce emissions
Last Update: March 4, 2026
Funding available
$ 5,000,000
Timeline
- Receipt of requests is now closed
Location
Canada
Overview
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.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Reduce environmental footprint
Eligible Funding
- Maximum amount : 5,000,000 $
- Up to 50% of project cost
Timeline
- Receipt of requests is now closed
Eligible candidates
Eligible Industries
- Transportation and warehousing
Location
- Canada
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Canadians
Non-profit candidates
Sector of operation
- Environment
- Economic, Social and Community Development
- Business Associations
Target groups
- Indigenous peoples
- Business owners / entrepreneurs
Revenue structures
- All structures
Scope
- Municipal
- Regional
- Provincial
- National
Next steps
1
Determine your project
2
Validate your eligibility
Activities funded
- 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.
Eligibility
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.
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.
Contacts
Frequently Asked Questions about the Green Freight Program — Repower and Replace Program
Here are answers to the most common questions about the Green Freight Program — Repower and Replace. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Green Freight Program — Repower and Replace?
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.
How much funding can be received?
Green Freight Program — Repower and Replace Funds up to 50% of admissible expenses, capped at $5,000,000 per project.
Who is eligible for the Green Freight Program — Repower and Replace program?
To be eligible for the Green Freight Program — Repower and Replace program, you must:
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.
What expenses are eligible under Green Freight Program — Repower and Replace?
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.
Who can I contact for more information about the Green Freight Program — Repower and Replace?
You can contact Natural Resources Canada (NRCan) by email at freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca.
Where is the Green Freight Program — Repower and Replace available?
The Green Freight Program — Repower and Replace program is available across Canada.
Is the Green Freight Program — Repower and Replace a grant, loan, or tax credit?
Green Freight Program — Repower and Replace is a Grant and Funding
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