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Canada Cleans Fleet with $200 Million Green Freight Program

September 11, 2023

Source: ACT News

As the U.S. treks on with efforts to establish its clean, competitive economy through Inflation Reduction Act (IRA) subsidies, Canada has recognized the race is on. To match the budget and clean energy targets of its southern neighbor, Canada has concluded annual investments of $100 billion are necessary to achieve net-zero emissions targets by 2050.

In 2022, with ambitious federal targets to decarbonize the transportation sector, Canada allocated nearly $1 billion to two zero-emission vehicle incentive programs, the Natural Resources Canada Zero Emission Vehicle Infrastructure (ZEVIP) and the Transport Canada Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Programs. These funding opportunities were met with high popularity, calling for Canada to expand its clean energy investment with yet another landmark program, the Green Freight Program (GFP).

This $200 million initiative builds on the ZEVIP and iMHZEV programs, which saw such profound demand from medium- and heavy-duty fleets that the Government of Canada recapitalized low-and zero-emission transportation investments for five years in its 2022 budget. GFP funds near-zero emission vehicles to encourage cleaner vehicle adoption in the freight industry, which requires higher payloads that cannot always be hauled by battery-electric vehicles.

GFP’s Stream 2 launched this summer, and through November 16 of this year, it will offer non-repayable contributions, or grant awards, towards fuel switching, engine repowers, and purchases of low-carbon alternative fuel.

How Does a Fleet Get Started?

Fleet managers looking to reduce vehicle emissions must first complete a fleet energy assessment. GFP makes this prerequisite easy by funding up to $250,000 per applicant for such assessments. Fleet managers must also commit to using at least 40% renewable or non-fossil fuels through 2027. To get started, access the GFP website to access information on how to apply. For any questions regarding the program or the application process, contact

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