Green Shipping Corridors Program – Navigating towards sustainability

Green Shipping

At a time when environmental awareness and sustainable practices are at the forefront, and as Canada strives to meet its greenhouse gas reduction target outlined in the 2030 Emissions Reduction Plan, the Government of Canada has embarked on a revolutionary journey towards a greener, more sustainable maritime future. The Green Shipping Corridor Program, from Transport Canada, aims to revolutionize the country’s marine industry. The Fund reflects a commitment to reduce the environmental footprint of marine  transportation while promoting economic growth.

The Green Shipping Corridor Program is designed to address the environmental challenges associated with the maritime sector along the Great Lakes, the St. Lawrence Seaway, and Canada’s East and West Coasts. The program allocates resources to projects that improve efficiency, reduce emissions, and promote innovation in the maritime sector. To meet the various challenges facing this sector, the program offers grants under two different streams: (1) Clean Ports Stream; and (2) Clean Vessel Demonstration Stream.

Clean Ports Stream 

This stream under the Green Shipping Corridor Program will provide up to $127.2M in funding over four years starting in 2024. Eligible applicants could receive up to $25M for their project and Transport Canada will fund up to 50% of the total eligible costs of a project. This program will fund recipients from both the private and public sectors, including provinces and territories, municipalities,  Indigenous governments, forprofit organizations, not-for-profit organizations, and Canada Port Authorities.

The projects targeted by this stream are those involving onshore equipment and infrastructure in ports and terminals, including but not limited to:

  • electrified or zero-emission port equipment available on the market (for example, electrified gantry cranes, cargo handling equipment)
  • recharging infrastructure for electrified equipment and vessels, including shore power
  • low carbon, zero-emission marine fuels, and bunkering infrastructure
  • port-administered incentive programs offering discounts or rebates on port charges that favor the use of greener and/or low-emission vessels (domestic and international)
  • studies that contribute to the implementation or adoption of emission-reducing equipment and infrastructure

This stream has an upcoming deadline of February 26, 2024, and all projects must be completed by March 31, 2028.

Clean Vessel Demonstration Stream 

The objective of this stream under the Green Shipping Corridor Program is to provide funding for projects that advance the domestic marine industry’s knowledge and capacity to transition to low-carbon vessels and zero- emission marine fuels and technology. Additionally, projects must target commercial vessels greater than 150 Gross Tons and be either Canadian-flagged or be operated  predominately in Canadian waters by a Canadian entity.

This stream has a total budget of $22.5M and will provide funding over 5 years, starting in 2023. Eligible applicants under this stream must be vessel owners and/or operators registered in Canada. It can be provinces and territories, Indigenous governments, municipalities, businesses, not-for-profit organizations, and Canada Port Authorities. Successful recipients can receive up to $125,000 in funding or up to 50% of eligible project costs, whichever one is less.

Examples of projects eligible for this grant are:

  • research, engineering, or feasibility studies required to determine the viability (or to support the design) of a ship demonstration project or elements of a ship demonstration
    project, before undertaking physical work or testing
  • safety assessments that are used to identify risks/hazards/challenges, including mitigation measures needed to overcome barriers to the deployment of low-carbon and/or
    zero-emission ship technology and marine fuels for use on ships
  • the development of safety codes and standards to facilitate the adoption of low-carbon and/or zero-emission ship technologies and marine fuels for use on vessels

Canada’s Green Shipping Corridor Program marks a transformative step towards a more sustainable future for the marine industry. Through strategic investments and a commitment to innovation, Canada is navigating the waters of change, proving that economic growth and environmental stewardship can indeed sail toward a cleaner, greener  horizon.