Fuel costs keep rising. Freight fleets also face growing pressure to cut emissions. The Green Freight Program: Assess and Retrofit helps Canadian fleets upgrade trucks and trailers with proven technologies that reduce fuel use and greenhouse gas emissions. The program covers up to half of eligible costs.
If you manage a fleet, you may be wondering which retrofit expenses qualify. This guide explains the eligible costs and requirements clearly.
The Green Freight Program — Assess and Retrofit is a federal, non-repayable grant from Natural Resources Canada (NRCan). It supports medium- and heavy-duty fleets operating Class 5 to Class 8 vehicles who want to improve fuel efficiency and reduce emissions.
Retrofits must be installed on existing trucks or trailers and directly improve fuel efficiency or reduce greenhouse gas emissions. Common eligible retrofit expenses include:
Aerodynamic devices
Low rolling resistance tires
Idle reduction technologies
Engine and drivetrain upgrades
Tire pressure management systems
Telematics and fuel management systems
These upgrades must be available commercially and installed on eligible vehicles within your fleet.
Tools like GrantHub’s eligibility matcher can help you filter programs by province, fleet size, and vehicle class in seconds.
Before retrofitting, many fleets start with a third-party fleet energy assessment. These assessments look at how your vehicles are used, how equipment performs, and how much fuel is consumed. The assessment helps you choose upgrades that will save the most fuel and reduce emissions.
While not mandatory in every case, assessments strengthen retrofit applications and help justify the expected emissions reductions.
Some costs are commonly misunderstood and are not covered, such as:
Always check NRCan guidelines before spending money on upgrades.
Including new vehicle purchases
The Green Freight Program supports retrofits to existing vehicles only. New truck purchases are not eligible.
Skipping the energy assessment
Many fleets miss its value. A third-party assessment often improves approval chances and ensures the right technologies are chosen.
Assuming small fleets are ineligible
Eligibility is based on vehicle class and emissions goals, not company size. Small and mid-sized fleets can apply.
Stacking funding without disclosure
You can combine grants, but all other funding sources must be disclosed. Total government support cannot exceed program limits.
Q: Who can apply for the Green Freight Program?
Canadian fleets operating Class 5–8 medium- and heavy-duty vehicles and aiming to reduce fuel use and emissions are eligible. Company size does not matter.
Q: Is Green Freight funding repayable?
No. The Assess and Retrofit stream provides non-repayable federal grant funding. Grant income may still have tax implications for your business.
Q: Can I apply without a fleet energy assessment?
In some cases, yes. However, assessments are strongly recommended and are often required to justify retrofit choices and projected emissions reductions.
Q: Can funding be stacked with provincial programs?
Yes, stacking is allowed, but total government assistance cannot exceed eligible cost limits. All funding sources must be disclosed in your application.
Q: What is the maximum amount one fleet can receive?
A single applicant can receive up to $250,000 in total funding under the Assess and Retrofit stream.
Getting clear on which retrofit expenses qualify can save your fleet thousands of dollars. Before you invest in new equipment, check which programs fit your fleet profile. GrantHub tracks hundreds of grant programs across Canada, including federal and provincial clean transportation funding. Using GrantHub’s tools can help you quickly find programs that match your needs.
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