Green Freight Program – Commercial Carriers Funding Program to Support Sustainable Efforts
Josh Hannaberry
Senior Advisor, Strategic Partnerships
Alberta Motor Transport Association
Organizations in the commercial transportation industry continue to make efforts toward more sustainable operations. Given the wide variety of businesses in this sector, their approaches to sustainability vary. For example, commercial carriers have been exploring ways to reduce fuel consumption across their fleets.
To support these efforts, there have been programs to support these initiatives – one program that has supported organizations in the transportation industry is the Green Freight Program.
The Green Freight Program helps fleets reduce their fuel consumption and greenhouse gas emissions through fleet energy assessments, fleet retrofits, engine repowers, logistical best-practice implementation and the purchase of low carbon vehicles. The program is administered through two key funding streams: Stream 1 Assess and Retrofit and Stream 2 Fleet Modernization.
Stream 1
Stream 1 is focused on providing grants towards third-party Fleet Energy Assessments and truck and trailer equipment retrofits. As of April 1, 2024, several modifications were made to Stream 1 that helped to streamline the application process, while responding to industry needs.
There are specific criteria an organization must meet in order to be eligible for the grant. In addition, there are vehicle eligibility criteria, including the trailer, such as being in service and being within eligible vehicles weight classes. It’s worth noting there is a list of non-eligible vehicles – organizations are encouraged to double check this list prior to navigating the application.
Under the Stream 1 program, grant funding is available to a maximum of $250,000 per application per fiscal year for two types of activities:
Third-party fleet energy assessments
Truck/trailer equipment retrofits
The third-party fleet energy assessment grant can be pursued when an organization hires a third-party energy assessment company but must ensure the assessment meets the minimum requirements in Natural Resources Canada’s (NRCan) Fleet Energy Assessment Checklist. In addition, NRCan has established a list of approved retrofits that are applicable. These include aerodynamics retrofits, anti-idling retrofits, auxiliary power units retrofits, tire retrofits, and other devices.
Stream 1 is currently set to close on March 31, 2027. For an entire breakdown of Stream 1, and the list of steps to get ready to apply for the Green Freight Program Grant, please click here.
Stream 2
Stream 2 is focused on providing cost-shared, non-repayable contributions for eligible projects. There are three project and funding activity types: repowering existing vehicles, purchase of low-carbon alternative fuel vehicles, and implementation of logistical best practices.
Under Stream 2, Canadian freight companies are encouraged to make data-driven investment decisions through the implementation of energy-efficient improvements to their fleets. The goal is to support Canadian freight fleets in the industry as they find opportunities to reduce greenhouse gas (GHG) emissions from on-road freight vehicles through adoption, purchasing, and implementing new technologies and logistical best practices.
Canadian freight fleets can repower existing vehicles; essentially, they are looking to operate with a lower-carbon or zero-emission alternative source of fuel. This includes repowering a diesel truck to operate on natural gas, hydrogen, or electricity. Dual-fuel options are also eligible.
Another option within Stream 2 is projects focused on purchasing low-carbon, alternative fuel vehicles. This includes new vehicles with low-carbon alternative fuel sources such as hydrogen internal combustion engines or natural gas vehicles.
Lastly, Canadian freight fleets have the option within Stream 2 to focus on projects that implement logistical best practices. This includes implementing operational practices that aim to improve fuel efficiency and reduce emissions generated by the transportation of goods.
Stream 2 is currently set to close on June 2, 2025. For an entire breakdown of the Stream 2, and for the list of steps to get ready to apply for the Green Freight Program Grant, please click here.
The Alberta Motor Transport Association (AMTA) remains diligent to support and collaborate with commercial carriers and other key stakeholders in Alberta, as they continue to put effort into projects and initiative focused on sustainability. For example, AMTA and other key stakeholders and partners are leading the Alberta Zero Emissions Truck Electrification Collaboration (AZETEC) project. This project is a first-of-its-kind project that includes the design, manufacture, and testing of two long-range heavy-duty hydrogen fuel cell (FCEV) trucks for operation year-round on Alberta’s Queen Elizabeth II Highway, between Calgary, and Edmonton.
Another avenue AMTA has taken to support commercial carriers in their sustainability efforts is by collaborating with expert organizations like GreenerFleets through the Green Freight Program. Over 100 fleets have partnered with GreenerFleets to complete both basic and advanced fleet energy assessments aimed at improving fuel efficiency and overall sustainability. Originally developed within Michelin’s Innovation Lab and now operating as an independent entity, GreenerFleets brings over 15 years of experience in fuel economy testing, product development in tires and aerodynamic devices, and now specializes in fleet sustainability best practices.
As Canadian transportation companies ramp up their efforts to operate more sustainably, the Green Freight Program offers a powerful opportunity to accelerate their progress and drive meaningful change.
To learn more about the work AMTA’s Industry Advancement Team is working on, click here. If you are interested in getting involved, or discussing Industry Advancement further, please email Terri Johnson, Manager of Industry Advancement at Terri.Johnson@amta.ca
Learn more about Michelin GreenerFleets and how they can assist your organization with the Green Freight Program here.