Fuel costs and emissions are two of the biggest operating pressures for Canadian fleets. The Green Freight Program – Assess and Retrofit Stream helps offset those costs by paying for third‑party fleet energy assessments and proven truck and trailer retrofits. Administered by Natural Resources Canada (NRCan), this federal program can cover up to $250,000 per applicant to improve fuel efficiency and reduce greenhouse gas emissions.
Below is a clear, step‑by‑step guide on how to apply, who is eligible, and what costs are covered—so you can decide if this program fits your business.
Stream 1 of the Green Freight Program supports two types of activities:
The program targets medium- and heavy-duty on-road freight fleets, typically Class 5 to Class 8 vehicles, operating in Canada.
To apply for the Green Freight Program (Assess and Retrofit Stream), you must meet all of the following:
Some industry-specific exclusions apply. For example, certain fleets tied to softwood lumber production may not be eligible.
If you manage multiple legal entities or fleets, eligibility is assessed per applicant, not per vehicle.
The Green Freight Program uses cost‑sharing, not full reimbursement.
Maximum funding per applicant:
Cost‑share limits:
Fleet Energy Assessments
Truck and Trailer Retrofits
Your business must pay the remaining portion. Funding is typically reimbursed after approved costs are incurred.
1. Fleet Energy Assessments
Eligible assessments must:
Internal assessments or informal reviews do not qualify.
2. Truck and Trailer Retrofits
Eligible retrofits include equipment with proven fuel‑saving benefits, such as:
Only equipment listed as eligible by NRCan qualifies. Installation and equipment must occur after approval.
See also: Green Freight Program: Eligible Retrofit Expenses for Fleets
Review the Applicants Guide (Stream 1)
Start with NRCan’s official guide to confirm eligibility and timelines.
Define Your Project Scope
Decide whether you are applying for:
Collect Required Documents
Typical documents include:
Submit Your Application Online
Applications are submitted through NRCan’s intake process. Program updates in April 2024 simplified forms and reduced duplication.
Wait for Approval Before Spending
Costs incurred before written approval are not eligible.
Tools like GrantHub’s eligibility matcher can help you filter programs by province, fleet size, and retrofit type in seconds.
Starting retrofits before approval
Any costs incurred early will be rejected.
Using ineligible equipment
Not all fuel‑saving devices qualify. Always check NRCan’s approved list.
Assuming 100% funding
The program caps funding at 50% of eligible costs.
Incomplete fleet data
Missing vehicle class or usage details can delay or derail approval.
Q: Is the Green Freight Program funding taxable?
In most cases, government funding is considered taxable income. Treatment depends on how the funds are used and recorded. Confirm with your accountant.
Q: Can small fleets apply, or is this only for large carriers?
Small and mid‑sized fleets are eligible as long as they operate qualifying vehicles and meet program requirements.
Q: Can I apply for retrofits without doing an assessment first?
Yes. An assessment is encouraged but not mandatory if your retrofit meets eligibility rules.
Q: Are used or refurbished devices eligible?
No. Retrofit equipment must be new. Retread tires, for example, are excluded.
Q: Can municipalities or Indigenous governments apply?
Yes. Public sector and Indigenous entities operating eligible fleets can apply.
GrantHub tracks hundreds of active grant programs across Canada—check which ones match your fleet, province, and retrofit plans.
If you are planning fuel efficiency upgrades, the Green Freight Program (Assess and Retrofit Stream) is one of the most generous federal options available to Canadian fleets. The key is confirming eligibility and applying before you spend.
GrantHub helps you compare this program with other transportation and clean technology grants, so you can plan projects that stack funding and reduce payback time. See also:
Was this article helpful?
Rate it so we can improve our content.
Canada Proactive Disclosure Data
The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.