Leveraging the Green Freight Program for Canadian fleet decarbonization

Author: Rippan Bhattacharjee, Robert Dysiewicz
Freight Truck on Road

At a glance

Freight operations across Canada are racing to meet customer demands for greener transport. As these demands increase, fleet operators are challenged with many opportunities and risks associated with introducing retrofitting technologies and transitioning to zero- and low-carbon alternatives, including how they will pay for this transition.

Help is available to offset some of the costs through the Green Freight Program offered by the Canadian Federal government via Natural Resources Canada (NRCan). Stream 1 is now open and available for applicants to apply. Unlocking these funds can feel complicated. Below are the eligibility criteria, benefits, and ways GHD can help you navigate the funding challenge. 

GHD can assist with the Fleet Energy Assessments using our proven ZEVO (Zero Emissions Vehicles Optimization) consulting platform, GHD ZEVO.

What you need to know to be eligible

Vehicles between the weight classes of 2B to 8 (GVWR of 3,856 kg and above) with a license and insurance to operate in Canada, are eligible to apply.

Only entities operating in Canada are eligible to apply for the program, including companies, industry associations, research associations, standards organizations, Indigenous and community groups, Canadian academic institutions, and applicable provincial, territorial, regional, or municipal governments or their departments or agencies.

Some vehicles remain ineligible, such as SUVs, pickup trucks, public transit buses, school buses, and all other vans.  

Green Freight Chart.jpg

The Stream 1 program is available annually until March 31st, 2027 and provides grant funding up to a maximum of $250,000 per applicant. These funds go towards Third-Party Fleet Energy Assessments and Truck/Trailer Equipment Retrofits. A Fleet Energy Assessment must be conducted before Truck/Trailer Equipment Retrofit Grant applicants purchase new fuel-saving devices. The assessment should thoroughly evaluate and recommend specific devices for acquisition.

The funding is divided into two types of assessments. Fleet operators can opt for a basic or an enhanced assessment, depending on their needs. The assessment must include the following information:

  1. General Fleet Information – Provide a detailed overview of your fleet, encompassing crucial details such as the number of vehicles, duty cycle, fuel types, vehicle categories, age, and other pertinent parameters. This section serves as a comprehensive introduction to your fleet assets.
  2. Technology Investment Details – Share insights into your historical fuel-saving and greenhouse gas (GHG) reduction investments. Additionally, outline your strategic approach for future endeavours, including considerations for retrofitted devices and potential transitions to new vehicle technologies. This section delves into the innovative aspects of your fleet management.
  3. Data Analysis – Summarize the impact of your fuel and GHG reduction investments, offering a clear snapshot of their effectiveness. Calculate the net potential for fuel and GHG reduction and present an actionable implementation plan. This section focuses on the tangible outcomes and steps derived from your data analysis.
  4. Enhanced Data Analysis – For a more detailed examination, provide in-depth insights, commitments, and a strategic plan. This includes considerations for engine repowers, new vehicle acquisitions, and the implementation of logistical best practices. This section caters to advanced assessments requiring a higher level of detail and strategic planning.

Green Freight Chart 2 (3)

More details

NRCan fleet energy assessment criteria and guidelines

Please note that self-fleet energy assessments are not eligible for funding.  

Our response

GHD can assist with the Fleet Energy Assessments using our proven ZEVO (Zero Emissions Vehicles Optimization) consulting platform, GHD ZEVO™, an innovative solution for unpacking the various complexities of transportation decarbonization and optimizing zero and low-emission fleets. ZEVO streamlines efforts by enabling real-life data and allowing rapid analysis of different fleet decarbonization options. With ZEVO, fleet operators can be confident they have the depth of insight to decide how to reduce fossil fuel usage and reduce GHG emissions. The basic principle of ZEVO is to transform fleet and operational data into various decarbonization scenarios, including analyzing retrofits and outright replacement with alternatives.

What does the grant application require?

The Application Form must bear the signature of the Applicant's Chief Financial Officer, and the application package should encompass information on the entity and fleet, a signed copy of the Fleet Energy Assessment, details on activities/investments undertaken, project timelines, proof of vehicle registration and insurance, invoices with proof of payment, evidence of other government or private funding (if applicable), a signed completion and payment confirmation letter from the installation company, and a completed Device Purchase and Installation Table.

How to apply

  1. Ensure eligibility criteria are met before proceeding.
  2. Complete a third-party Fleet Energy Assessment (Enhanced or Basic).
  3. Request the application form by emailing freightassessment-evaluationdeflotte@nrcan-rncan.gc.ca.
  4. Submit a signed and completed Grant Application Form, along with all required documentation, to the email above.
  5. Upon approval, receive and sign the Grant Agreement provided by NRCan, then email it to the email above.
Long Haul Truck on Road

You could be eligible if you have heavy-duty vehicles in your fleet, and are in Canada

Contact us to find out if you're eligible

How else can GHD help?

Unlock the power of our vast expertise in crafting cutting-edge fleet decarbonization and energy assessment strategies! Our proven track record spans across diverse clients, including industrial giants, dynamic cities, forward-thinking municipalities, efficient transit systems, and beyond.

Embrace our energy-agnostic methodology, where objectivity reigns supreme in our analyses tailored to the specific nuances and operating conditions of your fleet. Whether you're exploring the potential of battery electric, harnessing the possibilities of hydrogen, embracing the efficiency of hybrids, leveraging natural gas, or delving into other groundbreaking zero and low-emission technologies, we've got you covered.

Our tailored approach ensures that the insights we deliver are not just insightful but immediately actionable, empowering fleet operators like never before. Choose confidence, choose results – partner with us for a greener and more sustainable future!

We have experience performing Fleet Energy and Transition Assessments across North America, including: 

  • 2000 fleet assets examined for fleet assessment and transition strategy 
  • 23 unique fleets in various industries and organizations 
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