Transport accounts for nearly 25% of Canada’s total gas emissions, with refrigerated trucks consuming up to 20% more fuel due to continuous cooling demands. As cold-chain logistics become more widespread, the need for efficient, low-emission systems intensifies.
In response, the Government of Canada now offers funding through the Green Freight Program to support upgrades to refrigeration units across commercial fleets. This article outlines how to access these reefer unit grants and reduce operational costs while staying compliant.
What Are Transport Refrigeration Units and Why Do They Matter
Transport refrigeration units (TRUs), or reefers, are used in trucks and trailers to maintain cargo temperature. These units are critical for moving perishable goods across long distances, including:
- Food and beverage products
- Pharmaceuticals and vaccines
- Agricultural and temperature-sensitive industrial goods
However, many traditional TRUs rely on fuel-heavy diesel engines, which increase operating costs and contribute to environmental impact.
Benefits of upgrading TRUs:
- Lower fuel consumption
- Reduced greenhouse gas emissions
- Extended equipment life
- Improved compliance with food safety and pharma logistics standards
Available Government Grants for Refrigerated Trucking Equipment
The Green Freight Program, managed by Natural Resources Canada (NRCan), provides non-repayable funding to help carriers invest in more efficient freight technology. This includes refrigeration equipment upgrades, which may qualify for up to 50 percent reimbursement, capped at $10,000 per unit.
Grant-Eligible Refrigeration Units:
| Equipment Type | Function | Funding Available |
|---|---|---|
| Electric refrigeration unit | Powered by electricity, ideal for zero-emission cooling | 50% up to $10,000 per unit |
| Diesel reefer with idle reduction | Enhanced fuel-efficient model with lower emissions | 50% up to $10,000 per unit |
| Electric + solar combination unit | Uses solar panels to supplement electric cooling power | 50% up to $10,000 per unit |
Overview of refrigeration unit types eligible for Green Freight Program funding.
Submit Your Green Freight Program Application
Who Is Eligible for Reefer Equipment Funding?
Funding is available to Canadian-based trucking carriers that operate freight vehicles using transport refrigeration systems. Strong candidates for eligibility include fleets operating in provinces such as:
- Ontario
- Alberta
- British Columbia
Carriers moving the following types of cargo are also prioritized:
- Perishable foods and beverages
- Health care and pharmaceutical goods
- Sensitive temperature-controlled industrial materials
Applicants must demonstrate current fleet usage, equipment type, and intent to reduce emissions through technology upgrades.
Cost Savings and Long-Term ROI for Reefer Retrofits
Depending on the unit, installing a new TRU or upgrading an existing one can cost between $12,000 and $20,000. With available grants, carriers may receive up to $10,000 back per reefer, significantly lowering the capital investment required.
Additional benefits include:
- Reduced fuel use over time
- Lower maintenance costs
- Minimized downtime due to equipment failure
- Extended compliance with regulatory requirements
These upgrades often deliver a return on investment within 18 to 24 months, especially for high-mileage fleets.
Conclusion:
Canada’s Green Freight Program provides carriers with a timely opportunity to modernize refrigerated transport. With up to 50 percent of costs covered, fleets can reduce emissions and improve reliability without bearing the full burden of retrofit expenses.
